Kinder Morgan Energy Partner's owns 40 percent equity ownership interest in Endeavor Gathering LLC. The entity provides gathering and compression services to GMX, Inc., for their production from the Cotton Valley Sandstone formation in east Texas and Haynesville Shale acreage in La.
On October 24, 2012, the Company sold specified operated and non-operated oil and gas properties in the Cotton Valley Sands and shallow rights located in East Texas and Louisiana ("Cotton Valley Assets") for $66.7 million , net of selling costs and adjustments to reflect revenues and expenses related to the Cotton Valley Assets from September 1, 2012, the effective date of the sale, through September 30, 2012.
Which means the only division NOT included in the chapter 11 (Endeavor Gathering) is 60% owned by GMXR with a "value" of $100.05M. The combined partnership is worth $166.75M. Kinder Morgan is a very profitable company and recently purchased several companies (below)
Jan 30 (Reuters) - Kinder Morgan Energy Partners LP will buy natural gas pipeline operator Copano Energy LLC for $3.22 billion to tap into growing demand for infrastructure to transport vast supplies from the shale fields of Texas and Oklahoma.Private equity firm TPG Capital, Copano's top shareholder with a stake of more than 14 percent, will get a 41 percent premium to its $300 million investment made in 2010, if the deal goes through.
Dec 2011 (NYT) - The deal is the latest in a flurry of multi-billion-dollar takeovers in the U.S. pipeline industry over the past two years as companies rush to cash in on a shortage of pipelines to move gas and gas liquids such as ethane and propane.Kinder Morgan agreed on Sunday to buy the El Paso Corporation for about $21.1 billion in cash and stock, striking one of the biggest energy deals in history, to tap into a boom in natural gas drilling and production.Through the deal, Kinder Morgan will become the biggest of North
America’s midstream energy companies,
So, this asste it's not going to be auctioned and it's not included in the 280M$ assets, right?
A couple of questions.
WHY they haven't included the gathering co. if there are substantial doubt that assets will cover 100% od debt
WHAT they plan to do with this asset. They're going to keep it ? I'm not an attorney, but it doesn't seems logical and legal that they buouyt the entire company deleting actual shareholders without tryin to raise the max value from assets..
All this means is that the limited liability company Endeavor Gathering is not itself part of the BK. However, GMXR's 60% interest in the LLC is a corporate asset of GMXR and of course is subject to sale as part of GMXR's BK estate. Just like if GMXR owned 5% of XOM (that would solve all their problems!), that wouldn't mean XOM goes BK too, but GMXR's shares in XOM would be part of their assets in the BK estate.
On Monday, GMX reported that it has filed a voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the Western District of Oklahoma. Along with this petition, the firm is pursuing an asset purchase accord with holders of its Senior Secured Notes due 2017 to purchase substantially all of its operating assets and undeveloped acreage. GMX’s joint venture Endeavor Gathering, in which it owns a 60 percent membership interest, is not included in the filing. GMX is an oil and gas exploration and production firm with assets in the Williston Basin, East Texas Basin, and Denver Julesburg Basin.