Arena Energy’s $1 Billion of Debt Puts Driller in Bankruptcy (1)

Offshore oil company Arena Energy LP filed for Chapter 11 bankruptcy in Texas on Thursday with a plan to sell itself, crushed by a $1 billion debt load and the historic plunge in energy prices.

The company, which is headquartered in The Woodlands, Texas and operates in the Gulf of Mexico, is now seeking support from creditors to be sold to a consortium including existing management and private equity firm Lime Rock Partners, the company said in court filings.

Arena started looking at ways to address its debt pile in 2018, including refinancing or extending maturities, but that ...