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Thursday, 01/28/2016 1:47:24 PM

Thursday, January 28, 2016 1:47:24 PM

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Quicksilver sells assets to BlueStone for $245Million

Quicksilver Wins Court Approval to Sell Assets to BlueStone for $245 MillionFont size: A | A | A
12:34 PM ET 1/27/16 | Dow Jones
By Lillian Rizzo

A bankruptcy judge on Wednesday approved Quicksilver Resources Inc.'s (KWKAQ) sale of its oil and gas drilling operations throughout Texas to BlueStone Natural Resources II LLC for $245 million in cash.

"The sale price meets the market price under the circumstances of what is a very challenged oil and gas market these days," said Judge Laurie Selber Silverstein in the U.S. Bankruptcy Court in Wilmington, Del., on Wednesday. "I find it was a rigorous sale process."

BlueStone was named the winner of Quicksilver's operations following a Jan. 20 bankruptcy auction that spanned nearly 19 hours over two days, according to court papers. BlueStone beat out Barnett Shale Gas LLC after several rounds of bidding.

Based in Tulsa, Okla., BlueStone is a private-equity backed acquirer of oil and gas assets, formed in 2006.

"The members of the BlueStone management team have collectively over 100 years of experience in the oil and gas industry, and have partnered the last 13 years in private-equity-backed oil and gas companies," said Bill Sullivan, counsel for BlueStone.

Quicksilver, based in Fort Worth, Texas, had reached out to 240 potential purchasers as part of the process.

The company filed for chapter 11 protection last year with a $2.3 billion debt load amid falling gas prices that led dozens of energy companies to bankruptcy court throughout 2015. The company's senior lenders include Silver Point Capital LP and Farallon Capital Management LLC. Big investors in the second-lien group include Monarch Alternative Capital LP and OFI Global Asset Management Inc., according to court papers.

The second-lien lenders were declared the back-up bidder should the deal with BlueStone fall through. The lenders offered a $250 million bid that included $90 million in cash.

(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to dbr.dowjones.com)

Write to Lillian Rizzo at lillian.rizzo@wsj.com

> Dow Jones Newswires

January 27, 2016 12:34 ET (17:34 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.

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