Auction To Be Held At:
Dakil Auctioneers, Inc.
200 NW 114th St.
Oklahoma City, OK
Registration will begin at 9:00am day of auction.
This public sale is of the Collateral Claims, as defined below, of Big Chief Plant Services, LLC, against REP Processing, LLC, as asserted, plead, stated, or proven in a civil action that is pending in the District Court of Weld County, State of Colorado, styled: REP Processing, LLC v. Big Chief Plant Services, LLC, et al., Case No. 2019cv30940, and any verdict, report, decision, finding, rendition, order, judgment or decree in favor of Big Chief Plant, together with any and all products or proceeds (including cash proceeds) thereof, wherever found, arising out of and relating to the following:
REP Processing engaged Big Chief Plant to serve as the general contractor for mechanical, structural, foundation, and insulation for the Pierce gas plant in Weld County. REP Processing also engaged Big Chief Plant to perform pipeline work associated with the gas plant.
REP Processing filed suit against Big Chief Plant and its principals, the Marcums, over the gas plant and pipeline work. The claims REP Processing asserts against Big Chief are for: breach of contract/breach of covenant of good faith and fair dealing (against Big Chief Plant), fraudulent misrepresentation/inducement/concealment (against Big Chief Plant), conspiracy (against Big Chief Plant and the Marcums), violations of Colorado’s Organized Crime Control Act (C.R.S. § 18-17-101) (against the Marcums), conspiracy to violate the Colorado Organized Crime Control Act (against the Marcums), declaratory judgment (against Big Chief Plant), equitable accounting (against Big Chief Plant), unjust enrichment (against Big Chief Plant), and exemplary damages. REP Processing’s claimed damages against Big Chief Plant are at least $8.4 million in principal, plus additional offset amounts against Big Chief Plant’s counterclaims. REP Processing further claims it has paid all amounts due and owing to Big Chief Plant or is excused from further performance due to Big Chief Plant’s material breaches.
Big Chief Plant asserts counterclaims against REP Processing. Those claims are for: Count 1: Action on Account Stated (unpaid Gas Plant invoices), Count 2: Breach of Contract (unpaid Gas Plant invoices), Count 3: In Quantum Meruit, or Unjust Enrichment (Gas Plant), Count 4: Lien Foreclosure (unpaid Gas Plant invoices), Count 5: Action on Account Stated (unpaid pipeline invoices), Count 6: Breach of Contract (unpaid pipeline invoices), Count 7: In Quantum Meruit, or Unjust Enrichment (pipeline), and Count 8: Lien Foreclosure (unpaid pipeline invoices) (“Collateral Claims”). Big Chief Plant claims the total amount owed under the Collateral Claims is $14,777,136.60 for unpaid invoices on the plant, plus $1,978,793.75 in unpaid invoices on the pipeline work for the Cheyenne Station, Rockport 10″, Drylander 10″, and Homer 6″ totaling $16,755,930.40.
All summary judgment motions have been ruled upon. In denying Big Chief Plant’s affirmative motion for summary judgment on its contract claims for the plant, the Court ruled that disputed material facts exist as to the nature of the parties’ agreement, whether Big Chief Plant is in breach or REP is in breach, whether Big Chief Plant released its claims against REP Processing, and whether REP Processing owes Big Chief Plant additional amounts for the gas plant. All claims and counterclaims referenced above are set to be tried. The case is set for a two-week jury trial December 5-16, 2022.
A data room is available to access including documents related to the Collateral Claims, the pleadings in the case, the summary judgment orders, pre-trial submissions, confessed judgments by Big Chief, and pending tax liens related to Big Chief.
Click here for Data Room
The Collateral Claims will be sold to the highest qualified bidder for cash, or the credit against outstanding indebtedness held by the Secured Party or for which the Secured Party is entitled by contract to bid. Please be advised that Secured Party reserves its right to credit bid, and may credit bid, at the Public Sale of the Collateral Claims.
All bidders must pre-qualify at least two (2) business days before the Public Sale date, by no later than Wednesday, November 30, 2022 (the “Bid Qualification Date”), by depositing $10,000.00 (by bank to bank wire transfer, certified or cashier’s check jointly payable to “Dakil Auctioneers, Inc.” and “The Danny and Donna Wright Revocable Trust dated December 14, 2012” or another form of payment Secured Party may agree to accept in writing) (a “Deposit”) with Auctioneer, and all deposits (except that of highest bidder) shall be returned within one (1) day of the conclusion of the bidding. Cash deposits will not be accepted. The highest bidder’s deposit shall be non-refundable. The balance of the highest bid payable to Secured Party by bank-to-bank wire transfer, certified or cashier’s check shall be delivered to Auctioneer no later than December 2, 2022 at 5 P.M. (Central Standard Time), which may be continued, in writing, to a later time and date in Secured Party’s sole discretion. If the highest bidder defaults upon payment of the balance, its deposit and any partial payments are forever forfeited and the Collateral Claims, at Secured Party’s sole option and discretion, may be sold to the next highest qualified bidder. Secured Party, directly or indirectly through nominees or assigns, reserves the right to bid at the Public Sale without tendering deposit, as required for other bidders, to credit bid, and to take title to the Collateral Claims immediately after the Public Sale, or on such other date as Secured Party shall elect in its sole discretion. Interested parties who would like additional information should contact Michael Furlong, Esq., counsel to the Secured Party, by telephone at 405-850-5369 or e-mail to Michael.Furlong@steptoe-johnson.com
The Public Sale may be canceled or continued from time to time, without further notice other than as given at the Public Sale date and place, at the sole and absolute discretion of Secured Party. Only bidders that are eligible to bid (“Qualified Bidders”) will be permitted to participate in the Public Sale. If there are no Qualified Bidders, the Collateral Claims may be sold to Secured Party or its designee any time after the Bid Qualification Date on the basis of a credit bid of all or part of the Loan.
There will be no warranty made or provided relating to title, possession, quiet enjoyment or the like in connection with the disposition and sale of the Collateral Claims. The Collateral shall be sold AS IS, WHERE IS, and all warranties of quality, quiet enjoyment, fitness, merchantability and all other warranties, express, implied, arising by statute, common law or otherwise are expressly excluded. Secured Party makes no representation or warranty as to (i) state or condition of title, (ii) the merits of the Collateral Claims, (iii) existence, validity, or amount of any liens or claims senior to that of Secured Party, or (iv) value of the Collateral Claims or the collectability of any proceeds of the Collateral Claims.
Buyers premium will apply.
