It appears that Seahawk Drilling Inc. is selling its assets to Hercules Offshore Inc. without a bankruptcy auction. In a Chapter 11 case, a debtor selling assets under 11 U.S.C. Sec. 363 usually further market tests the assets by conducting an auction before seeking approval of the sale from the bankruptcy judge.
Seahawk Drilling and its affiliates sought chapter 11 protection (Bankr. S.D. Texas Lead Case No. 11-20089) to sell its assets to Hercules Offshore, Inc., for $105 million in cash and shares.
"In the opinion of Simmons And Company International and the board of directors, further marketing efforts would not likely result in any offers superior to the Hercules Asset Purchase Agreement," a court filing said. The sale motion does not propose any bidding deadline or an auction date.
The fist day hearing is scheduled today February 14, 2011, at 3:30 p.m. CST.
Both companies expect to obtain regulatory clearance under the Hart-Scott-Rodino Antitrust Act and close the transaction in the second quarter of 2011.
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