Opinion ID: 2954553
Heading Depth: 2
Heading Rank: 1

Heading: The Sale to NuStar.

Text: By April 2011, the Trustee had renewed sale efforts and chose NuStar Energy (“NuStar”) as designated purchaser for the Refinery (including the Working Capital Assets), the Adjacent Real Property, and the Elmendorf Tank Farm. The sale to NuStar did not include the Redfish Bay Assets. The bankruptcy court approved the sale to NuStar for a base purchase price of $41 311 U.S.C. § 363. All section references herein are to title 11 of the United States Code (the “Bankruptcy Code”). 4 Case: 14-50046 Document: 00513196170 Page: 5 Date Filed: 09/16/2015 No. 14-50046 million, $2.2 million for platinum on hand, 4 and a “net working capital adjustment.” This Working Capital Adjustment was a post-closing finalization of the value of the Working Capital Assets. It appears from the record that because the relevant parties could only estimate the value of the Working Capital Assets at the close of the sale to NuStar, the ultimate purchase price could have been either greater or less than the $41 million base price. By its terms, the Refinery Sale Order directed that NuStar place about $8 million in escrow and transfer about $37 million to the Trustee at closing. Of that $37 million, after subtracting expenses, the Refinery Sale Order directed that the Trustee transfer $36 million to Chase, in partial payment of its pre-petition claim, and $118,915 to JP Morgan, in partial payment of the DIP Financing Facility balance. The sale to NuStar closed on April 19, 2011. On April 28, 2011, pursuant to the Refinery Sale Order, the Trustee and NuStar jointly prepared an estimated valuation of the Working Capital Assets, permitting the release of about $5 million from escrow to the Trustee, leaving $3 million in escrow, subject to finalization of the Working Capital Adjustment. Following the sale to NuStar and the subsequent release of part of the escrowed funds, the Trustee held $12,653,111 in cash. On May 6, 2011, the Trustee transferred $7 million to JP Morgan, reducing the outstanding balance of the DIP Financing Facility to about $5 million and leaving the Trustee with a cash balance of about $5.6 million. The partial payment to Chase had reduced the outstanding balance of Chase’s pre-petition claim to about $4.2 million.