Epic asset sale procedures approved; auction scheduled for Nov. 12

By Caroline Salls

Pittsburgh, Oct. 3 – Epic Cos., LLC obtained court approval Thursday of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

In an effort to maximize the value of its assets for the benefit of creditors, Epic said it has negotiated an asset purchase agreement with stalking horse bidder White Oak Global Advisors, LLC.

As consideration for the sale, White Oak will credit bid its pre-bankruptcy and post-bankruptcy secured debt in the amount of $48.9 million and will assume $40 million of the company’s pre-bankruptcy junior credit agreement debt.

Upon closing of the sale, White Oak will sell some of the purchased assets to Alliance Energy Services, LLC for a cash purchase price of $40 million and an assumption of $35 million of the assumed debt in a separate transaction financed by White Oak.

Competing bids are due by 6 p.m. ET on Nov. 8. An auction will be held on Nov. 12, if necessary.

If Epic closes a sale to a buyer other than White Oak, it will pay White Oak an amount equal to $500,000 to the extent the net cash proceeds from the sale to the bidder are less than or equal to $75 million and White Oak did not withdraw its stalking horse bid under circumstances not covered by the sale procedures.

Epic would pay $1 million to White Oak to the extent net cash proceeds are less than or equal to $75 million and the bid was withdrawn in accordance with the bid procedures or $2 million to the extent the net cash proceeds are greater than $75 million. These bid protections would then be transferred to Alliance by White Oak.

The minimum and subsequent overbid amounts are both $250,000.

The sale hearing is scheduled for Nov. 15.

Epic is a Houston-based full-service provider to the global decommissioning, installation and maintenance markets. The company filed bankruptcy on Aug. 26 under Chapter 11 case number 19-34752.

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