Mach Resources LLC and Bayou City Energy Management LLC once again look to pick up assets in chapter 11, The Deal reported. Court papers show Houston upstream energy company Alta Mesa Resources Inc. on Jan. 15 is set to auction its assets in connection with a $310 million stalking-horse offer from joint venture BCE-Mach III LLC. Bayou City, a Houston upstream-focused private equity firm, already is a backer of Alta Mesa. The lead bid covers both Alta Mesa’s assets and those of its nonbankrupt Kingfisher Midstream LLC unit, which provides midstream energy services, including crude oil and gas gathering, processing and marketing and produced water disposal in the Stack play. Kingfisher would file for chapter 11 by Jan. 15 to complete the sale, which would reserve $85.25 million for Kingfisher’s estate, with the remainder of proceeds allocated to Alta Mesa. Alta Mesa and Kingfisher combined in February 2018 via a reverse merger with Silver Run Acquisition Corp. II that then was expected to create a public company with a market capitalization of $3.8 billion. Alta Mesa, however, said it subsequently faced depressed oil prices, a lack of liquidity and too much debt. Under amended bidding procedures approved Dec. 19 by Bankruptcy Judge Marvin Isgur, most interested parties have until Jan. 8 to submit offers for Alta Mesa’s assets; the debtor’s secured lenders have until Jan. 10. BCE-Mach would receive a 3 percent breakup fee if topped at auction.
