Asset Sale Disputes

Snow Spence Green LLP has represented buyers, sellers, and creditors in Section 363 bankruptcy asset sales. In particular, the Firm has handled a number of asset sales involving oil and gas properties and represented creditors of debtors who seek to sell oil and gas properties through the bankruptcy process. Generally speaking, when a debtor seeks to sell assets outside of the ordinary course of business and outside of a plan, such asset sale is governed by section 363 of the Bankruptcy Code. In many cases, debtors will seek to sell assets under section 363 because the process is generally quicker, less expensive, and the sale is not voted upon by all creditors as with a bankruptcy plan. While there are certainly benefits to conducting a sale under section 363, there are also unique issues that creditors must be aware of which may impact their lien rights or otherwise affect their rights of recovery against the debtor in connection with a 363 asset sale. Snow Spence Green LLP has experience in prosecuting objections to 363 asset sales and has successfully protected its clients' rights in 363 asset sales, in particular, those in which the property was proposed to be sold for less than the fair market value or on the basis of a "credit-bid" by a pre-petition lender of the debtor.

Representative Experience

Below is an illustrative list of matters that Snow Spence Green LLP has handled involving asset sale disputes:

  • In re Republic Resources, LLC; Case No. 15-52637; In the Western District of Texas, San Antonio Division. 

  • In re MPF Holding US LLC, Debtor; Case No. 08-36084; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division.  Represented Official Committee of Unsecured Creditors in connection with sale of largest multi-purpose floater vessel under construction in the world.

  • In re Wave Energy, Inc., Debtor; Case No. 09-34577; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division. Successfully opposed sale of debtor’s primary assets and successfully objected to recognition of alleged lease ownership by a third party.

  • In re EnRe, L.P., Debtor; Case No. 02-21354-C-11, In the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. Debtor was engaged in oil and gas exploration and production with liabilities in excess of $100 million.  Counsel for the official unsecured creditors= committee successfully opposed initial proposed sale which ultimately lead to a significant increase in the recovery by unsecured creditors.

  • In re Cornerstone E&P Company, L.P., et. al., Debtors; Case No. 09-35228-BJH (Jointly Administered); In the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. Debtors were engaged in oil and gas exploration and production. As counsel for a mineral lien creditor group, successfully established lien priority and assisted in the sale of oil and gas leases which in turn resulted in a significant increase in recovery by unsecured creditors.

  • In re Reichmann Petroleum Corp., Debtor; Case No. 06-20804; In the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. Represented a mineral lien creditor group in connection with the sale of debtor’s oil and gas leases.

  • In re Circle Supply, LLC, Debtor; Case No. 11-38077; In the United States Bankruptcy Court for the Southern District of Texas; Houston Division.  Represented purchaser of assets in 363 sale.

  • In re Naknek Electric Association Inc., Debtor; Adversary No. 11-90007; In the United States Bankruptcy Court for the District of Alaska.  Represented purchaser of assets in heavily negotiated and complex transaction with debtor and multiple secured creditors.

  • In re Aspen Exploration, Inc., Debtor; Case No. 08-50325; In the United State Bankruptcy Court for the Southern District of Texas, Houston Division. Represented purchaser of assets from bankruptcy trustee.