Court Approves $18 Million Sale of Nighthawk Energy Subsidiary

Date : 06/29/2018 @ 3:44PM
Source : Dow Jones News
Stock : Commonwealth Bank Of Australia (CBA)
Quote : 81.33  0.02 (0.02%) @ 4:49PM
Commonwealth Bank Of Aus... share price Chart

Court Approves $18 Million Sale of Nighthawk Energy Subsidiary

Nighthawk Energy (LSE:HAWK)
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By Oliver Griffin

 

Nighthawk Energy PLC (HAWK.LN) said Friday that a U.S. bankruptcy court approved the sale of its operating subsidiary, Nighthawk Production LLC, to Polaris Production Partners LLC for $18 million, and that the company will be wound up when the sale completes on July 12.

The court's approval marks the final countdown for Nighthawk Energy, which first filed for chapter 11 bankruptcy in May after it received a default notice from Commonwealth Bank of Australia (CBA.AU), its lender, regarding a $21.3 million loan. Seeking to auction the assets of Nighthawk Production, the company agreed to a sale-and-purchase agreement where Polaris placed a stalking-horse bid--used to avoid low auction bids--which valued the company at $18 million. However, no additional bids were received by the June 22 deadline.

The net proceeds of the sale will be used to pay the outstanding loan to CAB, while shareholders aren't expected to receive anything, the company said.

Nighthawk Energy also said that Stockdale Securities Ltd. has resigned as its stockbroker and nominated advisor, effective immediately.

As directors expect to wind the company up, Nighthawk Energy said it won't be appointing a replacement nominated advisor and its shares will be cancelled on the AIM market of the London Stock Exchange one month from today.

 

Write to Oliver Griffin at oliver.griffin@dowjones.com

 

(END) Dow Jones Newswires

June 29, 2018 03:29 ET (07:29 GMT)

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