The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Osage Exploration and Development, Inc. on March 9, 2016. The Court approved the asset purchase agreement between the debtor and U.S. Energy Development Corporation, the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $5 million in cash. To qualify as a qualified bidder, interested parties should submit their bids by March 22, 2016.

The initial minimum overbid should be in the amount of $0.23 million more than the initial purchase price. Qualified bids should accompany with a good-faith deposit of $0.10 million. If the debtor receives any qualified bids then it would hold an auction for its assets on March 24, 2016.

At the auction, the subsequent bids would be in increments of $0.10 million. The winning bidder shall make an additional cash deposit of at least 10% of the winning bid. The stalking horse bidder would be entitled to a break-up fee of $0.15 million and expense reimbursement of $0.08 million in case of termination of the asset purchase agreement.

The sale hearing is scheduled for March 31, 2016.