Bankrupt Arena Energy Gets Access to Cash to Fund Reorganization

Offshore oil company Arena Energy LP won bankruptcy court approval to access the cash it needs to keep its business going as it reorganizes under Chapter 11.

Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas approved the company’s cash collateral motion Friday at a first day hearing, along with other motions that allow the company to pay utilities, taxes, wages, and other day-to-day business obligations.

The Woodlands, Texas-based Arena Energy, which operates in the Gulf of Mexico, filed for bankruptcy Thursday with over $1 billion in debt.

The company owes $597 million under a ...