Marion Energy requests approval of $40 million sale, case dismissal

By Caroline Salls

Pittsburgh, April 7 – Marion Energy Inc. requested court approval of the $40 million credit bid sale of substantially all of its assets and asked the U.S. Bankruptcy Court for the District of Utah to dismiss its Chapter 11 case, according to Monday court filings.

The parties to the proposed asset purchase agreement are Marion Energy, TCS II Funding Solutions, LLC, and two newly formed affiliates of TCS, including Utah Gas Solutions LLC and Utah Gas Solutions II LLC.

Under the purchase agreement, Utah Gas Solutions II will acquire all of the estate’s interest in its Helper field, and Utah Gas Solutions will acquire substantially all of the estate’s other assets, including its interest in the Clear Creek field.

According to the case dismissal motion, if the Utah Gas Solutions entities buy Marion’s assets, no cash proceeds will be available for distribution to unsecured creditors.

If the purchaser is a third party, the company said it expects that the purchase price will be substantially less than the outstanding balance of TCS; secured loan, meaning there would still be no proceeds available for distribution to unsecured creditors.

“After the transfer, there will be no assets in the estate that require administration and no funds in the estate available for distribution to unsecured creditors,” the company said.

Marion is an Allen, Texas-based natural gas exploration company that filed for bankruptcy on Oct. 31, 2014. The Chapter 11 case number is 14-31632.

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