Tri-Point Oil & Gas Production Systems LLC will liquidate in Chapter 11 following the collapse of a prepetition sale due to volatile market conditions.
The First Reserve Corp.-backed oilfield services company in court papers said it and investment banker Parkman Whaling LLC had been in talks over the previous weeks with a potential stalking-horse bidder and to secure debtor-in-possession financing to fund a Section 363 sale process. The bidder, however, on Friday, March 13, said it was halting due diligence because of market conditions in the sector as well as the broader economy.
CEO and CFO Jeffrey Martini in a declaration said that without a bid in hand the company could not sure funding for a sale process, but existing lender Wells Fargo Bank NA is providing a $6 million DIP to fund a wind-down effort. Tri-Point already has filed a motion to sell industrial projects in Elk City, Okla., and Canadian, Texas, at an auction beginning March 23.
Under an agreement with Wells Fargo, Tri-Point must secure approval of bidding procedures for its assets within 20 days, conduct an auction by May 18, obtain sale approval by May 22 and close all sales by May 28.
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