Tulsa-based NBI in position to buy Toklan Oil and Gas
BY ROD WALTON World Staff Writer
Saturday, October 13, 2012
10/13/12 at 5:00 AM
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A Tulsa energy company is in position to buy out Toklan Oil & Gas Corp., provided its $6.078 million bid and Toklan's reorganization plan are approved in bankruptcy court, according to reports Friday.
NBI Services Inc. earlier agreed to be the "stalking horse" bidder for Tulsa-based Toklan, which filed for Chapter 11 protection earlier this year after its connection to a failed California real estate deal.
Toklan is a 52-year-old company headed by Pat Cobb, a prominent figure in Oklahoma oil and gas circles.
The two Tulsa companies now have a stock purchase agreement for reorganization of Toklan's debts and the sale of all its common stock. Other companies can still bid for Toklan's assets by a Nov. 6 deadline, according to a filing by Toklan attorney Neal Tomlins in U.S. Bankruptcy Court in Tulsa.
The winner would own all of Toklan's oil and gas assets, including interests in approximately 580 producing properties in Oklahoma, Texas, Wyoming, Arkansas, California and Utah.
More than 400 of Toklan's properties are in Oklahoma and 100 in Wyoming, according to reports.
The winning bidder also would acquire stock in Toklan's wholly owned subsidiary, Dallas-based Sand Springs Oil & Gas Co., as well as 50 percent ownership in TOG/TM21 Centre and in PHR LLC.
Toklan is operator of about 40 properties, while Sand Springs Oil & Gas operates six wells in Texas.
TOG/TM21 owns a commercial office building at 2642 E. 21st St., where Toklan is based, while PHR owns 75 percent of the Oxford Court residential development in Broken Arrow.
A PHR deal in California hastened Toklan's financial collapse. PHR and Oresund Capital owned interests in Northgate Crossing LLC to build a commercial and residential development in the Coachella Valley area of southeastern California, according to reports.
La Jolla Bank FSB provided financing for the Northgate project, but the bank failed in early 2010.
OneWest bought out La Jolla's assets, which included Toklan's $26.27 million guarantee of debt.
A California judge ordered the debtor to pay the guarantee in April.
Toklan also owes about $20 million to Bank of Oklahoma, according to reports.
All proceeds from Toklan's sale will pay creditors, a company press release stated.
Cobb is Toklan's president and also serves as vice chairman of the Oklahoma Independent Petroleum Association's executive committee.
Toklan: From birth to bankruptcy
1960: Company formed as Duncan Corp.
2003: PHR LLC, headed by Toklan President Patrick Cobb, formed as Tulsa-based investment firm. PHR eventually takes 50 percent stake in California real estate project called Northgate Crossing.
2008: Developers announce Northgate Crossing, a mixed-use residential and commercial development in Coachella Valley near Indio, Calif.
2009: OneWest Bank begins operations after investment group buys assets of failed Independent National Mortgage Corp., or IndyMac.
2010: La Jolla Bank, financier of Northgate, fails and is acquired by OneWest Bank.
May 2011: Northgate Crossing LLC files for Chapter 11 bankruptcy protection in California.
April 2012: California judge orders Toklan-PHR to pay $26.27 million for its guarantee of La Jolla's Northgate debt.
July: Toklan Oil and Gas files for Chapter 11 bankruptcy in Tulsa.
Wednesday: Toklan attorney Neal Tomlins files motion for order to sell equity interests in company. NBI Services is stalking horse bidder.
Original Print Headline: Tulsa's NBI positioned to purchase Toklan
Rod Walton 918-581-8457
rod.walton@tulsaworld.com
