Creditors of Bankrupt Sanchez Energy Seek to Sue Insiders

The committee of unsecured creditors in Sanchez Energy Corp.‘s Chapter 11 case wants authority to sue the company’s owners and management for allegedly misdirecting millions of dollars of company funds for the Sanchez family’s benefit at the expense of creditors.

Since Sanchez Energy was formed in 2011, millions of dollars have allegedly been transferred to the Sanchez family and other companies under its control, the committee said March 13.

Because a special committee of allegedly independent directors hasn’t sued to recover the money, the creditors must pursue those actions on behalf of the bankruptcy estate, the committee said in ...