SPAC Founders to Palm $29 Million Despite Merger Fail, Suit Says

A Nabors Industries Ltd.-affiliated sponsor of a special purpose acquisition company failed to secure a timely merger for the SPAC, yet the SPAC’s leaders improperly plan to take $29 million for themselves, an investment fund alleges.

Nabors, an oil and gas drilling contractor, formed the sponsor, Nabors Energy Transition Sponsor II LLC—and separate SPAC—in 2023 to raise money through the SPAC’s initial public offering and to complete a merger with a startup to be identified later, Carmac Fund LP says. But a proposed combination with energy management firm e2Companies LLC fell through in a “classic case of seller’s remorse” on ...