The death of Oklahoma energy giant Aubrey McClendon left many questions about how his assets will be divided. One of the companies in line to claim part of McClendon’s debt says it wants to be notified before the estate sells any assets worth more than $1 million.
Wilmington Trust told the court that McClendon personally guaranteed nearly $500 million that hasn’t been paid off yet. Last month, the court ruled that McClendon’s business interests could proceed as usual, but Wilmington said it has a right to make sure the assets aren’t sold at less than fair market value.
Probate attorney Rick Denker, who’s not involved in the case, told The Journal Record’s Dale Denwalt the court’s original order is common, that it happens every day:
“Wilmington is apparently concerned that the personal representative could, in the future, harm their property rights, but there’s nothing to indicate that the personal representative would do so,” Denker said. A creditor still would have the right to proceedings against an estate if assets are sold for far below market value, he said. “The issue is, should Wilmington have received notice prior to the entry of order, or should it be modified to give them protection in the future?” said Denker.
But Wilmington has said it was applied unconstitutionally. The judge in the case doesn’t have to rule on constitutionality, but he could simply adopt or deny Wilmington’s proposed order - that it should be allowed to review and object to large sales.
The probate case has just begun, and the court may soon order an inventory and appraisal of all McClendon’s assets.
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