Bloomberg Law
May 1, 2020, 11:00 AM

Sanchez Energy to Exit Bankruptcy Not Knowing Who Owns Driller

Steven Church
Steven Church
Bloomberg News

Nothing about Sanchez Energy Corp.’s bankruptcy has been easy.

Even after the oil driller’s bankruptcy-exit plan was approved on Thursday, creditors owed $2.4 billion must keep fighting in court to divvy up the equity of a company worth just $85 million.

“This plan should not be a model for any future Chapter 11 case,” Evan Fleck, the lead lawyer for unsecured creditors, told the judge overseeing the case.

U.S. Bankruptcy Judge Marvin Isgur approved a plan that strips the Sanchez family of its control and leaves them vulnerable to lawsuits by disgruntled creditors who blame them for their ...