Alpine Summit Energy Partners: Liquidating Plan After Asset Sales

Alpine Summit Energy Partners, Inc. and six affiliated entities filed chapter 11 petitions on July 5, 2023, in the U.S. Bankruptcy Court for the Southern District of Texas. The Nashville-based oil and natural gas developer liquidated its producing assets through two section 363 sales generating approximately $109 million in total proceeds. Judge Marvin Isgur confirmed a Third Amended Liquidating Plan on April 26, 2024.

As of year-end 2024, secured and priority creditors had received over $106 million in distributions. General unsecured creditors — including development partnership investors holding approximately $35.47 million in allowed claims — had received nothing, with the GUC Trust still engaged in claims reconciliation heading into 2026. The outcome of the pending Non-Op Adversary Proceeding is expected to determine the final claims objection deadline and, with it, the timeline for any GUC distributions.

Debtor(s)	Alpine Summit Energy Partners, Inc. (7 jointly administered entities)
Court	U.S. Bankruptcy Court, Southern District of Texas (Houston Division)
Case Number	23-90739
Petition Date	July 5, 2023
Confirmation Date	April 26, 2024
Judge	Hon. Marvin Isgur
DIP Facility	Bank7; $11 million new money plus $11 million roll-up; superpriority administrative status
Claims Agent	Kroll

From Reserve-Based Lending to Liquidation

Alpine Summit Energy Partners was a publicly traded oil and natural gas developer focused on the Austin Chalk and Eagle Ford formations in Texas, with Class A Subordinate Voting Shares, Multiple Voting Shares, and Proportionate Voting Shares listed on a Canadian exchange. As of the petition date, the company had developed 43 horizontal wells and one vertical well, generating revenue from oil (49.3%), natural gas (40.5%), and natural gas liquids (10.2%). The company employed 19 full-time employees and three independent contractors, located in both the United States and Canada.

Corporate structure. The seven debtor entities included ALPS as the public parent; HB2 Origination, LLC, which held title to substantially all producing assets under the Bank7 credit agreement; Ageron Energy II, LLC; Ironroc Energy Partners LLC and Ageron Ironroc Energy, LLC as asset operators; Alpine Summit Energy Investors, Inc.; and Alpine Carbon, LLC.

Management and governance. Craig Perry served as CEO and Chairman, Darren Moulds as CFO, William Wicker as CIO, Travis Reagan Brown as CAO, and Chrystie Holmstrom as CLO. COO Michael McCoy had been placed on unpaid administrative leave in late May 2023 pending an investigation into alleged misconduct conducted by Porter Hedges LLP on behalf of the board. Shortly before the petition date, ALPS announced the departure of certain directors and officers as the company prepared for a structured sale process.

Prepetition strategic review. In March 2023, ALPS announced full-year 2022 financial and operating results alongside a strategic review, disclosing that it had paused field activity following the completion of existing wells and engaged Stephens Inc. to market the South Texas assets. In September 2022, Porter Hedges had advised ALPS on a $55 million expansion of the ABS securitization facility with Kuvare affiliates, bringing the total facility size to $135 million — an infusion that proved insufficient to offset the coming credit and commodity squeeze.

Filing Triggers and Commodity Decline

The First Day Declaration identified a combination of credit contraction, commodity price declines, counterparty disputes, and rising field service costs that cut off the company's access to capital and reduced the value of its collateral base.

Credit contraction. ALPS's development plan relied on continued borrowing against proved developed assets to fund drilling activity, as internally generated cash flows could not support the pace of development. Bank7 refused to upsize its revolving facility, and broader retrenchment in oil and gas lending closed off alternative sources of capital. Bloomberg Law reported the filing as emblematic of the credit crunch facing small energy producers, noting that ALPS had been producing approximately 24,000 barrels of oil per day prior to the filing.

Commodity price decline. Natural gas prices fell approximately 63% between December 2022 and June 2023. Oil prices declined approximately 21.1% over a similar period, reducing both cash flows and the reserve base used as collateral under the Bank7 facility. The simultaneous decline in both commodity prices and credit availability left ALPS unable to refinance or extend its borrowing base despite holding what the company characterized as high-quality producing assets.

Midstream force majeure. A midstream force majeure event reduced production volumes and cash flow, and depressed the perceived value of assets during the prepetition marketing process that Stephens Inc. conducted. That marketing effort generated signed NDAs from over 35 parties but produced no satisfactory bids.

Service cost inflation. Significant increases in field service costs further eroded operating margins, compounding the cash flow pressure from declining commodity prices and reducing the net value recoverable from the company's drilling program.

Counterparty disputes. Dallas Petroleum Group, LLC and U.S. Producing Properties, Inc. withheld production proceeds owed to the debtors, restricting liquidity. The debtors filed adversary proceedings on the petition date. The DPG dispute would become a recurring thread through the sale process, plan confirmation, and post-confirmation litigation.

Capital Structure and Bank7 Credit Agreement

HB2 Origination, LLC owed approximately $54 million in principal under the First Amended and Restated Credit Agreement with Bank7, dated September 30, 2022. The facility originally permitted borrowing up to $65 million at the greater of 5% or prime plus 1.75%, with a final maturity of April 1, 2023. Bank7 extended the maturity to July 1, 2023 — four days before the petition date — pursuant to a March 2023 Extension Agreement. Bank7's claims were secured by the debtors' interests in producing assets and all proceeds thereof, giving the lender a first-priority lien on substantially all of the value in the estate.

ABS facility. A non-debtor special purpose vehicle had issued asset-backed securities to affiliates of Kuvare Insurance Services LP with an initial aggregate principal amount of $135 million. The facility had been expanded by $55 million in September 2022 to fund development activities and working capital. This obligation sat at the SPV level and was not directly on the debtors' balance sheets, but the SPV structure meant the ABS investors' recovery depended on the same underlying asset performance that was deteriorating under the commodity decline.

Development partnership claims. The debtors managed three active development partnerships — Alpine Maverick VI, Alpine Maverick VII, and Red Dawn II — in which investors provided funding for well development in exchange for partnership units. These investors held significant general unsecured claims. The GUC Trustee later stipulated to an allowed GUC claim of approximately $35.47 million for the Drilling Partnerships, making them the largest identified unsecured creditor constituency and the primary constituency whose recovery depends on the outcome of the GUC Trust's claims reconciliation and pending adversary proceedings.

Trade and vendor claims. The debtors estimated that vendors and suppliers might assert approximately $90.7 million in claims, with some asserting mechanic's liens. The debtors disputed a significant portion of these figures. The claimed lien amounts became a significant source of objections during both the South Texas and Giddings sale processes.

DIP Financing and Bank7 Control

Bank7 provided debtor-in-possession financing on an emergency basis on the petition date. The debtors filed an emergency DIP and cash collateral motion requesting authority to use cash collateral and access new money to fund operations through the sale process. The motion drew objections from multiple vendors and other parties regarding cash collateral use and the proposed sale process timeline.

Interim DIP. The court entered an interim DIP and cash collateral order on July 10, 2023, authorizing an initial draw of up to $8 million in new money. Interest accrued at the prime rate plus 2% per annum, with a default rate of 15%.

Final DIP. The final DIP and cash collateral order entered September 13, 2023, provided up to $11 million in new money commitments plus an $11 million roll-up of prepetition Bank7 loans, for a total facility of approximately $22 million. Bank7 received superpriority administrative expense status and first-priority priming liens on the debtors' collateral, subject to a professional fee carve-out. The facility included milestones requiring consummation of the South Texas sale by approximately 105 days post-petition and the Giddings sale by approximately 115 days post-petition. These compressed timelines gave Bank7 effective control over the pace of the case, ensuring a rapid liquidation of assets before further commodity deterioration could erode collateral values.

DIP prepayment and plan acceleration. Following the completion of both asset sales, ALPS made an $8.3 million prepayment on the DIP facility in December 2023, which the court approved. The prepayment accelerated the plan confirmation schedule, moving key deadlines forward and allowing the debtors to proceed toward plan confirmation on a faster timeline than the original DIP milestones contemplated.

Two-Track Asset Sales

The debtors pursued two section 363 sales covering separate asset packages: the South Texas Assets (Austin Chalk/Eagle Ford in South Texas) and the Giddings Assets (Giddings Field in Central Texas). Houlihan Lokey Capital, Inc. served as investment banker.

Bidding procedures. The debtors filed an emergency bidding procedures motion on July 12, 2023. The court approved bidding procedures on July 25, 2023, allowing the debtors to designate stalking horse bidders for either or both packages on a rolling basis.

South Texas sale. The debtors designated a stalking horse bid of approximately $83 million for the South Texas Assets. The auction was cancelled after no competing bids materialized. The buyer consortium consisted of San Isidro Energy Company II, LLC, Needmore Minerals, LLC, and Ageron Holdings, LLC. Oilfield service vendors and mineral interest holders — including Paleo Oil Company LLC, ERC Acquisitions, Baker Hughes, Halliburton, and Cactus Drilling — filed limited objections regarding mechanic's liens and cure costs. The debtors agreed to segregate $3.8 million at closing pending resolution of a dispute with San Roman Ranch Mineral Partners. The court approved the South Texas sale and entered the sale order on August 31, 2023.

Giddings sale. Giddings Production, LLC emerged as the successful bidder for the Giddings Assets. Dallas Petroleum Group, LLC and U.S. Producing Properties, Inc. raised multiple objections challenging the sale terms and the treatment of certain executory contracts. A stipulation was entered between Bank7, Giddings Production LLC, and Dallas Petroleum Group LLC resolving certain contract disputes. The court approved the Giddings sale on October 31, 2023.

The combined asset pool generated approximately $109 million in total consideration, roughly $25 million below initial expectations of approximately $134 million. The shortfall reflected the depressed commodity price environment and the midstream disruption that had suppressed asset values during both the prepetition marketing and the in-court sale process.

DPG Litigation and Other Contested Matters

DPG litigation. Dallas Petroleum Group, LLC and U.S. Producing Properties, Inc. had withheld production proceeds from the debtors both before and during the case. The debtors filed adversary proceeding No. 23-09002 on the petition date for recovery of estate property. The dispute was extensively litigated, with both parties filing substantial motions regarding sale proceeds and asset transfers. Law360 reported that claimants accused the debtors of improperly utilizing DPG property interests to fund the chapter 11 process, a claim the debtors contested.

Ironroc adversary proceedings. Multiple adversary proceedings were filed involving Ironroc Energy Partners LLC and related entities. Case No. 23-03213 involved an adversary proceeding that was the subject of an order denying motions in early 2024. The Non-Op Adversary Proceeding — involving non-operator interest disputes — remained pending as of early 2026, with the GUC Trustee's summary judgment motion outstanding. The resolution of this proceeding is expected to trigger the final claims objection deadline and determine the timeline for any GUC distributions.

White & Case retention. The court approved the retention of White & Case LLP as special litigation counsel in January 2024 to handle adversary proceedings, with the court noting that the firm's fees remained subject to future challenge despite a tentative settlement in the underlying dispute.

KEIP objection. The Official Committee of Unsecured Creditors objected to the debtors' Key Employee Incentive Plan motion, noting that the total asset pool of approximately $109 million was below the initial $134 million expectation, leaving unsecured creditors facing significant recovery uncertainty.

Sale objections. Dozens of oilfield service vendors, mineral interest owners, and other creditors filed objections to both sales asserting mechanic's liens, preference rights, and cure cost disputes. Many were resolved by stipulation or addressed in the sale orders.

McCoy employment dispute. Former COO Michael McCoy, placed on leave before the filing, issued a notice claiming "good reason" to terminate his engagement and sought related claims. The dispute was addressed through the plan.

Liquidating Plan and Post-Confirmation Trusts

The Third Amended Liquidating Plan was confirmed on April 26, 2024, and became effective on May 13, 2024. The plan had gone through multiple amendments; the debtors' DIP prepayment in December 2023 accelerated the confirmation timeline. The post-confirmation report filed for the fourth quarter of 2024 shows that the plan established two post-confirmation trusts:

Lienholder Trust. Coley Brown was appointed Lienholder Trustee to manage and distribute assets to secured and priority claimants.

GUC Trust. Paul Jansen was appointed GUC Trustee to manage the General Unsecured Creditor Trust and administer GUC claims.

As of December 31, 2024, cumulative distributions under the plan were $106,087,883 to secured claims, $268,347 to priority claims, and $0 to general unsecured claims. The bar date was August 16, 2023. The GUC Trustee had addressed approximately 2,972 claims through the third quarter of 2025. Both trustees continue to manage their respective trusts in an active post-confirmation phase, with the Lienholder Trust having distributed substantially all available secured-claim proceeds and the GUC Trust focused on resolving the remaining claims pool before any unsecured distributions can begin.

Claims Reconciliation and Pending Litigation

The GUC Trustee has filed omnibus objections to claims lacking sufficient documentation, including a Rule 9019 motion addressing claims by former Alpine officers. Orders sustaining objections to specific creditors — including RWDY Inc., Curtis & Son Vacuum Service, and Bedrock Petroleum Consultants — were entered in November 2025.

Schultz heirs dispute. The court issued a Memorandum Opinion on February 12, 2026, denying the Schultz heirs' request to reclassify their claims (totaling approximately $121,000 to $150,000) as secured rather than general unsecured. The Schultz heirs filed a Motion to Amend that opinion, with a hearing scheduled for April 13, 2026. The Leagle decision text for this ruling is publicly available.

Non-Op Adversary Proceeding. The Non-Op Adversary Proceeding involving Ironroc Energy Partners LLC remains pending as of early 2026, with the GUC Trustee's summary judgment motion outstanding. The outcome of this proceeding is expected to determine the final claims objection deadline, and with it, the timeline for any distributions to the Drilling Partnerships and other general unsecured creditors.

Debtor professionals. Porter Hedges LLP served as lead restructuring counsel and was recognized with a Turnaround Award by The M&A Advisor for its role in the Alpine Summit liquidation and 363 sale. Houlihan Lokey Capital, Inc. served as investment banker and financial advisor. Huron Consulting Services LLC provided chief restructuring officer services. Kroll served as claims and noticing agent. White & Case LLP was retained as special litigation counsel for adversary proceedings.

UCC professionals. Reed Smith LLP served as counsel to the Official Committee of Unsecured Creditors. Riveron RTS, LLC served as financial advisor to the committee. Rainey and Wortmann, PLLC served as special counsel to the committee.

Key Timeline

Frequently Asked Questions

What happened to Alpine Summit Energy Partners?

Alpine Summit Energy Partners, a Nashville-based oil and gas developer, filed chapter 11 on July 5, 2023, in the Southern District of Texas. The company liquidated its assets through two section 363 sales generating approximately $109 million. The court confirmed a Third Amended Liquidating Plan on April 26, 2024, which established separate trusts for secured creditors and general unsecured creditors.

Who is the claims agent for Alpine Summit Energy Partners?

Kroll serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Did unsecured creditors receive any distributions?

As of December 31, 2024, the GUC Trust had distributed $0 to general unsecured creditors. Claims reconciliation remains ongoing, with the GUC Trustee having addressed approximately 2,972 claims through the third quarter of 2025. The Drilling Partnerships hold the largest allowed GUC claim at approximately $35.47 million.

Why did Alpine Summit file for bankruptcy?

The company filed after natural gas prices fell approximately 63% and oil prices declined approximately 21.1% between late 2022 and mid-2023. Bank7 refused to upsize its revolving credit facility, a midstream force majeure event reduced production, and counterparty Dallas Petroleum Group withheld production proceeds. Rising field service costs further compressed operating margins.

What was the total recovery from the asset sales?

The two section 363 sales — the South Texas Assets to a consortium including San Isidro Energy Company II, LLC and the Giddings Assets to Giddings Production, LLC — generated approximately $109 million in total proceeds, roughly $25 million below the initial expectation of approximately $134 million. The shortfall was attributed to depressed commodity prices and midstream disruption.

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