The London and New York offices of Debevoise & Plimpton LLP are advising Petroleum Equity, a newly established private equity firm focused on the upstream oil and gas market, in its first investment through its investment vehicle Alpha Petroleum; the acquisition of ATP Oil & Gas (UK) Limited (ATP UK) from US parent company ATP Oil & Gas Corporation (ATP Corporation). The total transaction value stands at approximately US$133 million.

ATP Oil & Gas Corporation is a Houston, Texas based company that developed and produced oil and natural gas in the Gulf of Mexico and the North Sea. In late 2012, it filed for protection under Chapter 11 of the US Bankruptcy Code as a result of a multi-billion dollar insolvency and commenced a sales process for its subsidiary, ATP UK.

Petroleum Equity, which had previously evaluated ATP's assets, acted on an opportunity to acquire ATP UK when the sales process stalled in 2013. The transaction was approved by the US Court on 19th December 2013 and by shareholders and a creditor vote on Friday 10th January 2014.

The acquisition of ATP UK is expected to complete in February 2014.

ATP UK comprises four producing gas fields, substantial 2P (proven plus probable) development reserves as well as a corporate entity with UK North Sea operator status on all of its producing and development fields. Certain legacy liabilities amounting to over $1.2 billion of ATP UK have been compromised as part of the acquisition and the management team will stay in place.

Debevoise is advising Petroleum Equity on investment structuring and on certain U.S. bankruptcy issues connected with the investment.

The Debevoise team in London is being led by partner Geoffrey Kittredge, and includes tax partners Matthew D. Saronson and Richard Ward, and associate Kenneth Barry. M. Natasha Labovitz, a partner in the firm’s New York office, is advising on U.S. bankruptcy matters.