Quicksilver Resources Inc. (OTC Pink: KWKAQ) has begun a marketing and sale process to sell substantially all or a portion of its US and Canadian assets. The US process was initiated with the filing of a motion with the US Bankruptcy Court for the District of Delaware seeking approval of bidding procedures to begin a sales process for Quicksilver and its US subsidiaries under Section 363 of the Bankruptcy Code.
The motion to approve bidding procedures is expected to be heard by the Court on Oct. 6. The Canadian process will run parallel to, but separate from, the US process. Quicksilver and its subsidiaries intend to continue normal operations throughout the marketing and sale process.
Additionally, Quicksilver Resources Canada Inc. (QRCI) has executed a third forbearance agreement in which its first lien secured lenders will continue to forbear from exercising their rights and remedies in connection with specified defaults under the Canadian credit agreement related to the Chapter 11 filings of Quicksilver Resources and certain of its subsidiaries for a period up to and including Dec. 15.
Quicksilver and its US subsidiaries filed voluntary petitions under Chapter 11 of Title 11 of the US Code on March 17. The Chapter 11 cases are being jointly administered under Case No. 15-10585. Quicksilver's Canadian subsidiaries were not included in the Chapter 11 filing and are not subject to the requirements of the Bankruptcy Code.
The company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the US, and Bennett Jones in Canada. Houlihan Lokey Capital Inc. is serving as financial advisor.