Apollo, Fidelity Appeal Bankruptcy Court’s Mesquite Energy Ruling

Apollo Commodities Management LP and Fidelity Management & Research Company are appealing a bankruptcy court order that gave the majority of a bankrupt oil driller’s equity to junior creditors instead of lenders.

The lenders should have been awarded substantially all of bankrupt Mesquite Energy Inc.'s equity because they lent the company more than it was worth, they said. The lenders’ filing comes about a week after Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas said unsecured creditors would receive 70% of the company’s stock and 30% would go to the lenders.

“This decision is ...