Cano Petroleum receives only stalking horse bid; auction canceled

By Jim Witters

Wilmington, Del., June 8 - Cano Petroleum, Inc. received no additional bids before its bid deadline, so the company canceled the scheduled June 12 auction, according to documents filed June 8 with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Cano entered into a $47.5 million stalking horse bid agreement with NBI Services, Inc.

Under the NBI stock purchase agreement, all existing capital stock, including Cano's common stock and series D convertible preferred stock, will be canceled and NBI Services will receive all of the outstanding capital stock of reorganized Cano in exchange for $47.5 million.

The proceeds will be distributed to creditors under Cano's plan.

A combined hearing on the proposed sale and the confirmation of Cano's second amended joint plan of reorganization is scheduled for 10 a.m. ET on July 16.

Cano, a Fort Worth-based oil and natural gas company, filed for bankruptcy on March 8. Its Chapter 11 case number is 12-31549.

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