Debtor Files Motion to Approve Settlement with Halcon

On November 5, 2012, the Debtor filed an Emergency Motion to Approve Settlement (“Motion”) with Halcon in order to resolve the Complaint for Injunctive Relief that the Debtor previously filed against Halcon.  The Debtor and Halcon have agreed to a choice between two (2) potential settlement scenarios, as set forth in the Motion.  Under the first offer, Halcon would pay the Debtor $10,000,000 to purchase, as is where is, all leases and assets identified in the sale agreement previously approved by the Court (the “Sale Option”).  Under the second offer, Halcon would pay the Debtor $3,500,000 in exchange for a release of all claims arising out of the sale agreement, and the Debtor would retain all of its rights in all leases and assets identified in the sale agreement (the “Cash Option”).  

The Debtor has concluded that the Cash Option is the better settlement offer for the Bankruptcy Estate and its creditors, and it is seeking Court approval for the same on an expedited basis by the filing of its Motion.  A hearing has been scheduled on the Motion for November 13, 2012, at 10:00a.m. in the Erie Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie, PA 16501.  Any responses to the Motion are due by November 13, 2012 before 9:00a.m.