Luca International seeks court approval of bid procedures, asset sale

By Mark Reccek

Bethlehem, Pa., Sept. 21 – Luca International Group LLC requested court approval of the bidding procedures and sale of certain company assets, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company requests the court schedule the stalking horse hearing for Dec. 7 in the event the company selects a purchaser by Nov. 24.

The company is selling three operating oil and gas wells, a water disposal well and shut-in oil and gas well in Iberville and Ascension parishes in Louisiana, as well as oil and gas leases in Texas.

According to the motion, a $250,000 cash deposit will be applied to the purchase price at closing or returned to the potential bidder in the event the bidder is not the high bidder. If the winning bidder fails to close, the $250,000 deposit will be returned to the company in the form of liquidated damages.

The motion also said “without the sale, the debtors will be forced to reduce operations and face additional plugging and abandonment costs associated with the wells, which will substantially reduce their value. Moreover, there are other stakeholders that will be benefit from the sale. The debtors’ vendors and lease holders all will benefit by the continued operations of the wells by the ultimate buyers. The price paid by the buyer is of little significance to their interests.”

The deadline for submitting bids is Dec. 11, and the auction is scheduled for Dec. 16.

A final hearing is set for Dec. 21.

A hearing on the matter is scheduled for Oct. 19.

Luca International Group, a Houston-based explorer and producer of natural gas, petroleum and related hydrocarbons, filed for bankruptcy on Aug. 6. The Chapter 11 case number is 15-34221.

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