Received on Friday 6/15/19 a large set of legal documents that White Star has filed for Chapter 11 Bankruptcy. The first document covers a motion in the US Bankruptcy Court for the District of Delaware which basically covers the sale of the debtors assets and authrorizing assumption and assignment of executory contracts and unexpired leases and other legal wording. Anyone care to comment on this? The bid deadline is August 20, 2019. Would love to hear the specifics of how this is done and how it will affect the mineral interest owners!
We have some acreage under Gastar and Jones, chapter 11 is no bueno for production and therefore royalty income
Andy: Nothing will change for the mineral owners. There may some glitches along the way as they transition to reorganization or to a new operator, but your/our royalty rights will continue to be paid on the production due.
Todd M. Baker
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Correct current production shouldn’t be hindered… Todd, we are having trouble with Gastar on a title issue, we think we own more than they are showing on the division order. What is the best way around this issue?
You should first request a copy of their documentation that shows something different than what you show and then have your documents ready to present to them substantiating your claim. Your request should be for the Division Order Title Opinion as it pertains to your tract of land.
I also have several leases in Logan county and I received a similar packet from White Star Petroleum… However my deadline shows July 3rd. And to be honest this is the second packet stuffed full of legal mumbo and juris-my-diction crap with a side of notice of sale, auction and sale hearing stuff that I’ve received. So I’d guess we’re in the same boat. Here’s my question… Is an attorney a must with this or is it business as usual and don’t worry about it?
For all the other bankruptcy notices I have received, I just sat back and waited for the courts to make their decisions. Mineral owners have a preferred status. My attorney said no response was necessary unless you have an unusual situation where you have a different type of claim.
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Ok then sounds good. Thank you for your time.
I have received the new smaller bankruptcy package as well. This one, however, states to all persons and entities with claims against any of the debtor entities listed on page 1 of this notice. My name is already on the Proof of Claim as a creditor. It asks for amounts of my claim and other questions of the I wouldn’t know kind. Why would I know how much oil and gas is there? Also I am to pick which one of the White Star companies (there appears to be 5) of which I am a creditor. I acquired my half from a divorce settlement about 4 years ago, even though we were joint owners of the mineral rights. There are two horizontal wells and we get enough to make sure we do the right thing. The ex called today asking me what should we do. Is it time for an attorney in this matter? I read everything, but understand nothing at this point.
I just got my packet, but haven’t finished reading it yet. Usually, I do not send anything back and get my settlement months or years later. I may send this one back and choose the subsidiary that matches my check stubs and request “any and all royalties due on the xxxx wells”.
(Not giving legal advice…)
news on the bankruptcy.
So Contango acquired all of white stars assets? Particularly the Stillwater field?
The Contango website has the announcement.