Wed 03/09/2022 11:50 AM
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Relevant Document:
Voluntary Petition

Rockall Energy Holdings LLC, a Dallas-based privately held company “focused on development of a profitable carbon storage business through the utilization of existing oil and gas assets to incubate the portfolio,” according to its website, filed for chapter 11 protection today in the Bankruptcy Court for the Northern District of Texas. According to the petition, numerous affiliates are expected to file. The company reports $100 million to $500 million in both assets and liabilities. The debtors are represented by Vinson & Elkins in Dallas and New York as counsel and Lazard as investment banker. Ankura Consulting Group has been engaged to provide a chief restructuring officer. Stretto is the claims agent. The case number is 22-90000. The case has been assigned to Judge Mark X. Mullin.

Board resolutions attached to the petition state that the debtors and their advisors have been in discussions with the debtors’ prepetition lenders, including Goldman Sachs Bank USA as prepetition agent, regarding a possible sale of the company’s assets “and/or” a restructuring.

The debtors are pursuing a prepackaged plan premised on a restructuring support agreement entered into by the debtors, Goldman, and prepetition secured parties BTC Holdings Fund I LLC, BTC Holdings SC Fund LLC, and Shell Trading Risk Management LLC. Pursuant to the plan, the debtors would (i) market their assets for sale and consider bids for all, substantially all or any of the debtors’ assets to a successful bidder, or, in the alternative, (ii) implement a transaction pursuant to equitization provisions of the plan through which each secured party would receive its pro rata share of the equity interests in the reorganized company in exchange for the secured party’s claims. “In any event,” the resolutions state, a liquidation trust would be established for the orderly wind-down of any assets that are not subject to an asset sale or part of the secured parties equitization.

The resolutions add that the debtors will seek the use of cash collateral and reference a DIP financing facility to be provided by certain of the prepetition secured parties. At the election of the DIP lenders, all or a portion of the DIP facility claims would be convertible into interests in, or borrowings under, a new exit facility.

The debtors’ list of 20 largest unsecured creditors is led by WBI Energy Corrosion Services with a contract claim of an undetermined amount, followed by Steel Reef Burke LLC with a $1 million trade claim and Baker Hughes Oilfield Operations with a $830,414 trade claim.

Rockall’s equityholders are summarized below:

The affiliated debtors are listed below:

Reorg First Day will provide a full summary once the first day briefing is complete.
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