PostRock bankruptcy case converted to Chapter 7 at trustee’s request

By Caroline Salls

Pittsburgh, Dec. 24 – PostRock Energy Corp. Chapter 11 trustee Stephen J. Moriarty’s motion for conversion of the company’s Chapter 11 case to Chapter 7 was granted Friday by the U.S. Bankruptcy Court for the Western District of Oklahoma.

As previously reported, Moriarty said the sales of PostRock’s operating wells closed on June 21, 2016 and June 22, 2016, and the company ceased operations as of the closing dates.

The trustee said the remaining estate assets consist of litigation claims and physical assets with a nominal value, which can be prosecuted and liquidated in a Chapter 7 case.

“Trustee believes there is no viable avenue for reorganization of the debtor’s estates,” the motion said. “The cost to prepare a disclosure statement and plan, with accompanying solicitation, would be considerable and would far exceed the value derived, if any, from confirming a plan.”

The conversion took effect on Dec. 21.

PostRock, an oil and natural gas company based in Oklahoma City, filed for bankruptcy on April 1, 2016. The Chapter 11 case number is 16-11230.

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