A bankruptcy judge has signed off on the sale of most of San Antonio-based All American Oil & Gas Inc.’s assets to its largest creditor, the San Antonio Express-News reported. Santa Monica, Calif.-based Kern Cal Oil 7, which has held some $145 million in secured claims, will acquire the assets. KCO bid the amount it’s owed by AAOG as part of a “credit bid” in the proceeding. Chief U.S. Bankruptcy Judge Ronald King in San Antonio approved the deal on Thursday. The bankruptcy had been shaping up to be a contentious affair until AAOG and KCO agreed to mediate their claims. “AAOG shareholders stand to receive up to $5.5 million in royalty payments if certain pricing conditions are met,” said bankruptcy lawyer Deborah Williamson, who also represents the company. Read more.
Williamson is the author of ABI's revised and expanded When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition. Get your copy here.
