Oil & Gas Financial Journal featured an article co-authored by McGuireWoods lawyers Ryan Purpura, John Thompson and Kathryn Keane in its October issue. The article, titled “Emerging Trends in Distressed Oil Patch,” discusses investment and acquisition opportunities in the oil and gas sector amid rampant bankruptcy filings and reorganizations by exploration and production companies.
In the article, the authors detail the advantages and important considerations for two key types of opportunities for investors interested in purchasing assets in Chapter 11— a “363 sale” and a plan of reorganization/liquidation. The authors focus primarily on a 363 sale, which typically involves a robust public action process, and caution that “[w]ith the benefits, come the burdens.”
“Purchasing assets out of bankruptcy presents opportunities for realizing substantial value, but as we have seen, it is imperative that buyers understand the 363 sale process as well as their target assets,” the lawyers note in the article. “As always, advice from experienced counsel is essential, and the importance of a rigorous diligence process to vet the target assets cannot be overstated.”
The article is available in print and online.