Approach Resources bid procedures approved; auction set for Feb. 26

By Caroline Salls

Pittsburgh, Jan. 9 – Approach Resources Inc. obtained court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Under the approved procedures, Approach may select a stalking horse bid up to 10 days before the bid deadline. The company also received court approval to offer to pay any stalking horse bidder a 3% break-up fee and reimburse the lesser of 1% or $250,000 of its sale-related expenses if that bidder is not ultimately the high bidder.

Competing bids are due by 6 p.m. ET on Feb. 14.

An auction will be held on Feb. 26, if necessary. The sale hearing is scheduled for March 4.

Approach Resources is a Fort Worth-based oil and gas company. The company filed bankruptcy on Nov. 18 under Chapter 11 case number 19-36444.

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