Arena Energy’s Bankruptcy Plan Approved, Wiping $1 Billion Debt

Arena Energy LP won court approval to implement a bankruptcy plan that slashes more than $1 billion worth of debt from the offshore oil driller’s balance sheet.

Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas approved the Chapter 11 plan during a telephonic hearing Friday, finding it feasible and widely supported by all voting creditors.

As part of the plan, the company is being sold as a going concern to San Juan Offshore LLC, a consortium that includes existing members of Arena’s management and the private equity firm Lime Rock Partners LLC. San Juan ...