A First Reserve Corp. portfolio company that provides production and processing equipment for oil-and-gas drillers has filed for bankruptcy and intends to liquidate after a potential rescue offer fell through amid plunging U.S. oil prices, WSJ Pro Bankruptcy reported. Tri-Point Oil & Gas Production Systems LLC said that it was in talks before filing for bankruptcy and exchanged draft term sheets on a deal to sell the business as a going concern in chapter 11. But the potential buyer told the company that, as of last week, it was no longer interested in purchasing the business in light of turbulent market conditions roiling oil-field service providers and the global economy, Tri-Point Chief Executive Jeffrey Martini said in a declaration filed on Tuesday in the U.S. Bankruptcy Court in Houston. Now without a commitment to sell the business, Martini said that Tri-Point was unable to secure chapter 11 financing that would have been used to fund operations while the company continued to market the business in bankruptcy. Instead, existing lender Wells Fargo Bank N.A. agreed to provide Tri-Point with liquidity under its existing loan to wind up the business in bankruptcy, Martini said.
