On August 17, 2012, ATP filed for protection under Ch. 11 of the U.S. Bankruptcy Code, and received debtor-in-possession financing of approximately $600 million. On August 23, 2012, the bankruptcy judge presiding over ATP's case signed an order allowing ATP to pay amounts received after August 17, 2012 to those parties entitled to receive them, including the ORRIs, provided that the owners of the ORRIs execute an agreement providing for the repayment to ATP of any amounts that the bankruptcy court later finds to have been inappropriately paid (a "Disgorgement Agreement"). The Company has executed a Disgorgement Agreement and consequently expects to receive distribution from ATP of its share of production proceeds received by ATP after August 17, 2012. The Company anticipates that it will begin to receive monthly ORRI payments from ATP in September.
In August 2012, the Company sold $15.0 million face amount of its Everest Senior Unsecured Notes for an average price of 108.5, resulting in a realized short-term capital gain of $1.3 million, or $0.06 per share. This portion of the Company's investment in Everest Senior Unsecured Notes generated a 46.2% internal rate of return and a return on investment of 1.12x. The Company continues to hold $10.0 million face amount of Everest Senior Unsecured Notes.
MidstatesOn September 13, 2012, the Company agreed to purchase a $6.0 million participation in Midstates's $600 million private placement of 10.75% Senior Unsecured Notes due 2020 (the "Midstates Notes"). Proceeds from the Midstates Notes offering are expected to be used primarily to fund the cash portion of the purchase price for Midstates acquisition of assets of Eagle Energy Production, LLC. The Midstates Notes offering is expected to close on October 1, 2012. Steve Gardner, President and CEO stated, "We are pleased to report these developments with our portfolio investments during the quarter. The bankruptcy court approved ATP's motion to pay our ORRI's in the ordinary course of business. In addition, the bankruptcy court's finance order allows ATP to use funds to drill an additional well in the Gomez field in which we have an ORRI. We were pleased to participate in the Everest Senior Unsecured Note issuance in May. We sold down our position in August at attractive pricing to enhance our flexibility for future investment. After factoring in the Midstates Notes purchase, we have made gross investments totaling $117 million thus far in 2012 and currently have approximately $55 million available under our Investment Facility for new portfolio investments."
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