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Re: romang post# 436

Monday, 05/13/2013 11:52:45 PM

Monday, May 13, 2013 11:52:45 PM

Post# of 588
They could and they might be successful. I'm not against those ideas..but what I see is ATP is out of time.

The Judge is going to take into consideration that the debtor hasn't had exclusivity for 4 months now and yet no one came forth with a POR. Then he'll consider that there was an auction for the assets and no one even offered enough to cover the DIP loan. They didn't even announce a back-up bidder which tells me the next highest bidder wasn't even in the same area code as the DIP bid.

If there was genuine interest in reorganizing ATP he might consider giving more time...but the interest level has been DOA.

BP also has an objection filed in this case (doc # 1842) over some wells ATP bought from BP a few years ago that need to be decommissioned. The laws state that if ATP doesn't do it then the person who owned it before has to. The estimated cost is approx $250MM. I think the DIP lender wanted that BP claim as a bargaining chip to try and use in a trade for decommissioning those wells. I seriously doubt that claim would fetch any more than that...in fact if they could trade that claim for $250MM they'd be doing real well.

I'm all for alternatives..I just don't see any viable ones a Judge would accept. I could be wrong.

I think the Judge sees a company on life support with a high professional fee burn rate and the only thing to do is pull the plug and let it die.

It sucks ...but that's where this is at imo.







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