Massive West Texas KC7 Ranch Will Sell Under "Stalking Horse Deal" Approved By United States Bankruptcy Court
ICON GLOBAL ANNOUNCES BIDDING PROCEDURES AND FINAL AUCTION DATE, JANUARY 23, 2019
DALLAS, Jan. 9, 2019 /PRNewswire/ -- Icon Global Group's Bernard Uechtritz announced today that the United States Bankruptcy Court in Ft. Worth approved bidding procedures, a final auction overbid process and stalking horse protections for the KC7 Ranch. The final Auction is slated for 9:00 am January 23, 2019, for pre-qualified bidders.
On October 16, 2018, Icon Global had previously announced a call for offers and deadline of November 30, 2018 for the land, water and mineral rights for the much coveted 37,000 +/- acre KC7 Ranch, which included water rights and an estimated production capacity of approximately 400,000 BBLS of frac water per day via an independent 3rd party water report. The KC7 Ranch, near Balmorhea, Texas, will be liquidated in its entirety inclusive of all owned assets which importantly include extensive water, mineral and surface fee simple rights.
Uechtritz stated, "Our overall marketing strategy, and well published call for offers with a November 30, 2018 deadline resulted in a robust response and generated a number of offers and expressions of interest. We subsequently negotiated and confirmed a stalking horse contract offer amount of $32,500,000, subject to higher and better bids, from a very good buyer which in turn, sets the floor amount for our overbid auction on the 23rd of this month starting at $34 million. This includes a $1 million breakup fee for our stalking horse bidder in the event he is overbid, and also starts the bid process in initial $500,000 increments.
"Federal Judge Hon. Mark Mullin of the United States Bankruptcy Court approved our bidding process during a court hearing last Friday afternoon, January 4th, with no objections from the Debtor or other stakeholders and parties in interest. The deadline for qualified bid prospects to register for the auction is 4:00 pm Central Friday, January 18, 2019 and includes a required cash deposit of $1.5 million to our designated title company."
KC7 Ranch, Ltd., owner of the KC7 Ranch in Jeff Davies and Reeves Counties, Texas, filed bankruptcy on December 28, 2017. On August 21, 2018, Judge Mullin entered an order appointing Joseph M. Coleman of Kane Russell Coleman Logan PC as the Chief Marketing Professional, with mandate to sell the KC7 Ranch. "In my over thirty years as a corporate bankruptcy lawyer, I've never before heard of the appointment of a 'Chief Marketing Professional' in a bankruptcy case, but I think it is a unique and creative solution agreed to by the parties and approved by the Court. With the benefit of Icon Global's experience and remarkable marketing efforts, I expect to have the KC7 Ranch sale approved and closed in less than six months from my appointment," said Mr. Coleman.
"I am thrilled at the results of our marketing process, call for offers and the level and quality of our stalking horse bidder," stated Mr. Uechtritz. "This property had languished on the market with another agent for a long period of time without offers or results. Mr. Coleman obtained Court approval to retain me on October 3, 2018. We then launched our marketing campaign on October 16, 2018. We've completed in about 90 days what would normally take us 9 to 15 months of conventional ranch marketing. It has been a 24/7 process for us since October 3rd and continued nonstop throughout the holiday period; a process which included overcoming considerable hurdles while heavily negotiating multiple potential sale contracts. We are excited about the January 23rd Auction to bring this case to a fast close and to transition a new owner and steward for the KC7 Ranch."
About KC7 Ranch, Ltd.
Based in Fort Worth, Texas, KC7 Ranch, Ltd., is a privately held company that owns a real property asset known as the "KC7 Ranch". KC7 Ranch filed for Chapter 11 bankruptcy protection (Bankr. N.D Tex. Case No. 17-45166) on Dec. 28, 2017. The Debtor estimated assets between $50 million and $100 million, and liabilities between $10 million and $50 million.
About the KC7 Ranch
KC7 Ranch is situated on 37,759 +/- acres of topography rich land two hours southwest of Midland near Balmorhea, TX. This highly improved property comes completely turnkey and is a sportsman's paradise. The blend of open and mountainous terrain, pasture land and water provide an abundance of recreational activities as well as peaceful tranquility. The renovated historic main residence overlooks the large spring fed trophy bass lake and offers luxurious accommodations. The entire perimeter of the ranch is fenced, and the interior is cross fenced into 11 pastures. This ranch is two hours from Midland, TX, an hour from Fort Davis, and an hour and a half from Alpine.
This property has superior surface and subsurface water for the area. Ten natural springs flow from the mountains creating an oasis for wildlife, three of the springs feed water to pastures. There are also two lakes that cover 40 acres. The property is also on top of the Capitan reservoir and according to hydrology reports can produce an estimated 400,000 barrels per day of frac water which could be potentially distributed to the Delaware and Permian basin oilfields for decades to come. The property has 10,650+- net mineral acres included in the offering.
About Icon Global Group
Icon Global (www.Icon.Global), an affiliate of Briggs Freeman Sotheby's International – Ranch Division, designs and implements strategic, tactical marketing and sales campaigns for private clients with unique, high-end properties around the world. The company specializes in one of a kind, complex deals on behalf of high net worth clients, international investment funds, corporations, oil and gas ventures, among many others.
Icon Global was founded by complex deal maker and international real estate advisor, Bernard Uechtritz. The Australian native most notably led the record-breaking global marketing and sale of W.T. Waggoner Ranch in Vernon, Texas. Listed at $725 million, the iconic property sold in 2016 to billionaire businessman Stan Kroenke, earning the "Real Estate Deal of the Century" title. The company's combined listings and sales volume reached or exceeded $1 billion in 2016 and 2017, including the well-publicized sales of the $60M Barefoot Ranch (TX), $45M Rio Bonito Ranch (TX), $21M Dodge Ranch (WY), $34M Broseco Ranch (TX), among many others.
SOURCE Icon Global Group
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