October 21, 2017 11:47 PM ET

Oil, Gas and Consumable Fuels

Company Overview of Parallel Energy LP

Company Overview

Parallel Energy LP operates oil field and produces oil. The company was founded in 2011 and is based in Tulsa, Oklahoma. As of January 28, 2016, Parallel Energy LP operates as a subsidiary of Scout Energy Group II, LP.

1323 East 71st Street

Suite 200

Tulsa, OK 74136

United States

Founded in 2011

Phone:

918-712-7008

Fax:

918-712-8489

Key Executives for Parallel Energy LP

Parallel Energy LP does not have any Key Executives recorded.

Parallel Energy LP Key Developments

Motion for Asset Sale Approved for Parallel Energy LP

The US Bankruptcy Court gave an order approving the sale of substantially all the assets of Parallel Energy LP on January 11, 2016. The debtor has been authorized to sell substantially all its assets to Scout Energy Group II, LP, the stalking horse bidder for a purchase price of $110 million in cash. The debtor did not receive any other competing bids for the purchase of its assets and therefore Scout Energy Group II, LP emerged as the winning bidder.

Bidding Procedure Approved for Parallel Energy LP

The US Bankruptcy Court approved the bidding procedures relating to the sale of substantially all the assets of Parallel Energy LP on December 9, 2015. The Court approved the asset purchase agreement between the debtor and Scout Energy Group II, LP, the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $110 million in cash. Qualifying bidders must submit non-binding indications of interest by December 14, 2015. To qualify as a qualified bidder, interested parties should submit their bids by December 22, 2015. The initial minimum overbid should be in the amount of $0.38 million more than the initial purchase price plus break-up fee and expense reimbursement. Each qualified bid should accompany with a good-faith deposit of 10% of the purchase price. If the debtor receives any qualified bids then it would hold an auction for its assets on January 6, 2016. At the auction, the subsequent bids would be in cash increments of at least $0.38 million. The stalking horse bidder would be entitled to a break-up fee of 3% of the purchase price and expense reimbursement of $0.50 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for January 13, 2016 and if no qualified bids are received by bid deadline, sale hearing will be held on January 8, 2016.

Final DIP Financing Approved for Parallel Energy LP

The US Bankruptcy Court gave an order to Parallel Energy LP to obtain DIP financing on a final basis on December 2, 2015. As per the order, the debtor has been authorized to obtain a term loan of $9.4 million from Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Bank of Nova Scotia and Wells Fargo Bank, N.A. Canadian Branch with Canadian Imperial Bank of Commerce acting as the administrative agent. Canadian Imperial Bank of Commerce would contribute $3.19 million, Bank of Nova Scotia and Royal Bank of Canada will contribute $2.7 million each and Wells Fargo will give $0.81 million in the term loan. The DIP loan would either carry an interest rate of 10.25% along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either on February 4, 2016 or 30 days after entry of interim order or on the effective date of the plan or the date on which all the loans are paid. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The interim DIP was approved on November 10, 2015.

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Recent Private Companies Transactions

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