Former Moriah Powder River agreement party balks at cash use motion

By Caroline Salls

Pittsburgh, Jan. 7 – US Realm Powder River, LLC, formerly Moriah Powder River, LLC, membership interest purchase agreement party Wysoc Investments, LLC objected to the company’s proposed use of its property as adequate protection as part of its cash collateral access motion, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Wyoming.

Specifically, Wysoc said the company is seeking approval to grant to lender Powder River VPP, LLC adequate protection in the form of a security interest in and replacement lien upon substantially all of US Realm’s assets, which includes a utility deposit that belongs to Wysoc.

“Any order granting final approval of the use of cash collateral should be limited to granting liens on property of the debtor’s estate,” the objection said.

As previously reported, Wysoc entered a membership interest purchase agreement with US Realm Ventures, LLC in June 2019 under which Wysoc sold its equity interests in the entity that owns the US Realm Powder River debtor.

In addition to the sale of Wysoc’s ownership interests, Wysoc said the agreement made clear that some assets were not transferred were “excepted, reserved and excluded from the contemplated transactions” and reserved and assigned to Wysoc.

Moriah Powder River is a Denver-based oil and natural gas exploration and production company. The company filed bankruptcy on Oct. 31 under Chapter 11 case number 19-20699.

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