History
Alpine Summit Energy Partners won its exchange listing in 2022, but by mid-2023 it had filed for Chapter 11 and been delisted, with shareholders possibly receiving nothing.
2022-2023: Listing and mounting pressure
The record begins in September 2022, when the exchange certified Alpine Summit Energy Partners' securities for listing, clearing them to begin trading. The company's main asset was the Webb County Dorado asset, with San Roman Austin Chalk and Eagleford wells, which produced about 22,000 gross barrels of oil equivalent a day between September 2022 and February 2023. The company also paid monthly dividends of US$0.0315 per subordinate share in January and February 2023.
Trouble showed in March 2023. On March 10, subsidiary HB2 Origination signed a waiver with its lender, Bank7, covering all the covenants (promises about its finances) in Article VII of its credit agreement. The filing did not say why the waiver was needed. In May, Nasdaq warned that the shares had closed below the US$1.00 minimum bid price for 30 consecutive business days. The company had until November 21, 2023 to fix this and said it might consider a reverse stock split.
On May 30, 2023 the company issued 19,494,709 subordinate voting shares after a majority of holders redeemed their Class B units of HB2 Origination, and another 15,947 shares when Class C proportionate voting shares were converted. By the end of 2023 there were 33,929,921 shares on issue.
2023: Chapter 11 and delisting
On July 5, 2023 the company and its affiliates filed for Chapter 11 bankruptcy in the Southern District of Texas, seeking to sell all or substantially all assets under Section 363. The filing accelerated, meaning made immediately due, about US$54.0 million owed under the Bank7 credit facility and about US$82.7 million under the ABS facility. The existing bank group committed US$15.5 million of debtor-in-possession financing (money lent to keep operating during bankruptcy), of which US$8 million was approved on an interim basis on July 10. The company warned that shareholders might receive no payment.
On July 12 Nasdaq said the Class A shares would be delisted because of the bankruptcy cases, citing public interest concerns and concerns about the residual interest of shareholders. The company chose not to appeal. Trading on Nasdaq was suspended from July 21, with shares expected to move to the Pink Open Market, though trading there was not assured. On July 27 the exchange filed to remove the class of securities from listing. On August 8 the company suspended its duty to file periodic reports with the SEC.
As of that date, the sale process was still open, final approval of the financing was pending, and the outcome for shareholders was unknown.
Written from the 8 story beats below (2022 to 8 Aug 2023), which come from the company's own announcements and filings.