Polaris Operating, LLC

The court approved Polaris Operating’s sale of its WGU Equity Asset, consisting of membership units in WGU Energy, LLC, to Black Oak Energy Holdings, LLC for $2.0 million in cash. The WGU Equity Asset sale order authorizes the transaction outside the ordinary course and free and clear of liens, claims, encumbrances and interests, with those interests attaching to sale proceeds.

The order matters because it converts a discrete estate asset into cash while preserving lien disputes against the proceeds. The Debtors and buyer are authorized to close as soon as possible, with time deemed of the essence, and sale proceeds must be held in a segregated account pending further court order. The buyer also receives successor-liability protections except for obligations expressly assumed under the purchase agreement.