Alta Mesa buyer can’t get financing; disclosure statement hearing off

By Caroline Salls

Pittsburgh, March 10 – Alta Mesa Resources, Inc. said in a docket entry made Tuesday in the U.S. Bankruptcy Court for the Southern District of Texas that it “will not go forward with the disclosure statement hearing at this time.”

The hearing had previously been scheduled for Thursday.

Also on Tuesday, Alta Mesa filed a motion asking the court to enforce sale orders and purchase and sale agreements and award fees and expenses incurred by its estates as a result of a delayed closing.

Despite agreeing to a Feb. 12 target closing date for the assets of the Alta Mesa and Kingfisher Midstream debtors, the company said purchaser BCE-Mach III LLC still has not closed the sale.

“The buyer negotiated for milestones in the PSAs that put the debtors on a fast track to auction and sale approval,” the motion said.

“Then, once the court’s sale order was in hand, the buyer seemingly ‘put the brakes on’ the entire process in direct breach of the PSAs’ terms.”

Alta Mesa said BCE-Mach said on Tuesday, nearly one month after the target closing date and six weeks since the court’s sale order, that it no longer believes it will be able to obtain all of the financing to complete the sale and needs to obtain alternative financing.

However, the company said the buyer does not have a “financing out,” and the longer the closing is delayed, the more fees and expenses are being incurred by Alta Mesa.

Alta Mesa is an onshore oil and gas company based in Houston. It filed for bankruptcy on Sept. 11, 2019. The Chapter 11 case number is 19-35133.

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