The turmoil roiling U.S. energy markets has thrown the planned $320 million bankruptcy sale of Alta Mesa Resources Inc. into doubt after the company’s asset values collapsed and financing dried up, WSJ Pro Bankruptcy reported. The proposed buyer, a joint venture of private-equity firm Bayou City Energy Management LLC and energy company Mach Resources LLC, has said a financing offer from UBS AG fell through because of the market turbulence and plunging oil prices, according to papers filed yesterday in the U.S. Bankruptcy Court in Houston. Energy assets have plummeted in value over the coronavirus epidemic and a price war driven by Saudi Arabia, wiping out tens of billions of dollars in stock market value and slashing bond prices. The judge overseeing Alta Mesa’s bankruptcy approved the proposed sale in January over a competing offer from the company’s bondholders. Alta Mesa yesterday accused BCE-Mach of breaching its obligations under the sale, which includes the company’s Kingfisher Midstream LLC pipeline business, and sought a court order compelling the buyer to close. The company and the buyer are scheduled to appear in court on Thursday.
