© 2017 The Texas Lawbook.
By Natalie Posgate
(Feb. 28) – Louisiana-based Stone Energy said Monday that it has closed its previously announced $527 million sale of its 86,000 acres in the Appalachian regions to Pittsburgh-based EQT Corp.
Stone said the transaction will facilitate its exit from Chapter 11 reorganization that’s currently in bankruptcy court in the Southern District of Texas.
Houston lawyers from Latham & Watkins represented Stone in the deal. Corporate partner Robin Fredrickson led the deal team, along with associates Chad Smith and Michael Sellner.
Other attorneys on the deal included tax partner Tim Fenn and associate James Cole; corporate partners Michael Dillard and John Greer and associates Chad MacDonald and Daniel Harrist; finance partner Catherine Ozdogan and associate Mitchell McClellan; and bankruptcy attorneys from the firm’s Chicago office.
This is the second big deal for Fredrickson to lead in the past several weeks. On Jan. 12, Fredrickson led Anadarko’s exit from the Eagle Ford Shale when it sold its assets there to Blackstone Group and Sanchez Energy for $2.3 billion.
Stone filed for bankruptcy in December. Originally, Fort Worth-based Tug Hill had agreed to purchase Stone’s assets for $360 million, but once Stone filed for Chapter 11, the bankruptcy court ordered two additional bidders to be allowed to participate in an auction for the properties. Tug Hill’s $360 million offer served as the “stalking horse” bid.
As the winning bidder, a portion of the purchase price EQT will pay for the assets will go toward the break-up fee and expense reimbursements associated with Tug Hill’s initial purchase and sale agreement.
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