Sanchez Energy Files Bankruptcy to Tackle Ballooning Debt (1)

Sanchez Energy Corp. filed for bankruptcy after creditors pushed the company for months to address a debt load that swelled to more than $2 billion.

The oil and gas driller, which is controlled by a prominent Texas family, sought creditor protection in Texas, listing $2.28 billion of total debt in its court declaration. The company has received commitments from noteholders for $175 million in new financing, but said in court papers that it’s been unable to agree with stakeholders on a restructuring plan.

The Chapter 11 filing allows the company to keep operating while it crafts a turnaround plan. Chief ...