Marion Energy gets conditional approval to sell assets via credit bid

By Caroline Salls

Pittsburgh, May 6 – Marion Energy Inc. received court approval of the credit bid sale of substantially all of its assets to Utah Gas Solutions LLC and Utah Gas Solutions II LLC, according to a May 6 filing with the U.S. Bankruptcy Court for the District of Utah.

The Utah Gas Solutions entities were formed by lender TCS II Funding Solutions, LLC for the purposes of the credit bid transaction.

The purchase price is comprised of $38.24 million, plus the principal amount of any debtor-in-possession advances made by TCS to Marion Energy under its DIP loan after the date of the purchase agreement and the assumption or payment by buyers of assumed liabilities, as well as the release of all remaining amounts of a specified TCS claim and the DIP loan.

Despite the court approval, the company said there is still a possibility that TCS might choose to abandon the sale in favor of an alternate transaction.

As a result, Marion is required by May 14 to provide notice to all parties whether TCS has elected to close the sale, needs more time to decide or has elected to terminate the sale transaction.

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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