Alta Mesa Resources Inc. selected a private-equity venture’s $320 million bid as the winner at a chapter 11 auction for the oil and gas driller and its bankrupt pipeline and storage subsidiary, Kingfisher Midstream LLC, WSJ Pro Bankruptcy reported. The winning bidder, a joint venture of private-equity firm Bayou City Energy Management LLC and energy company Mach Resources LLC, added $10 million to a previous offer to prevail in the auction, according to court records. Alta Mesa selected the venture, BCE-Mach III LLC, over a competing offer from bondholders. A sale transaction requires approval from the U.S. Bankruptcy Court in Houston before closing, and a hearing to consider the proposed deal is scheduled for today. The bondholders said in court papers on Friday that they may object to the manner in which the auction was conducted and the selection of the winning bid. Kingfisher lenders also objected, saying that the sale process improperly excluded bidders interested in purchasing only midstream assets.
