Former Moriah Powder wins access to cash collateral through Feb. 29

By Caroline Salls

Pittsburgh, Jan. 16 – US Realm Powder River, LLC, formerly Moriah Powder River, LLC, received court approval to use the cash collateral of lender Powder River VPP, LLC through Feb. 29, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Wyoming.

“The purpose of the use of cash collateral is to fund the debtor’s operations and reorganization expenses to get the debtor through confirmation of a proposed plan of reorganization,” according to the motion.

As previously reported, membership interest purchase agreement party Wysoc Investments, LLC objected to the use of its property as adequate protection as part of US Realm’s cash collateral use motion.

Specifically, Wysoc said the company was seeking approval to grant to the lender 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.

However, Wednesday’s order came in the form of a stipulation under which the company, the lender and Wysoc consented to the terms of use.

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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