Nighthawk Energy (LSE:HAWK)
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2 Years : From Jul 2017 to Jul 2019
By Oliver Griffin
Nighthawk Energy PLC (HAWK.LN) said on Tuesday that directors intend to wind up the company and have its nonoperating assets liquidated under the U.S. Bankruptcy Code.
The oil-and-gas company said the winding-up process will take place after it has sold its Nighthawk Production subsidiary to Polaris Production Partners LLC.
The company said it has canceled an auction for all or most of Nighthawk Production after no additional bids were received by the June 22 deadline.
Nighthawk Energy and its subsidiaries filed for Chapter 11 bankruptcy in May. The company said the bankruptcy court will now conduct a hearing to approve the sale of its subsidiary to Polaris Production Partners LLC, which placed a so-called stalking horse bid--used to avoid low bids as part of a court auction--valuing the assets at $18 million.
Closing of the sale is expected to take place on or around July 1, Nighthawk Energy said.
The net proceeds of the sale will be used to make outstanding loan payments to Commonwealth Bank of Australia (CBA.AU) and to pay permitted expenses in the course of the Chapter 11 bankruptcy cases.
The company said that the sale isn't expected to provide value to shareholders, whose interests come after the claims of creditors and administration expenses under U.S. bankruptcy law.
London-traded shares were suspended on May 1.
Write to Oliver Griffin at email@example.com
(END) Dow Jones Newswires
June 26, 2018 03:40 ET (07:40 GMT)
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