Bankruptcy Judge Blocks Litigation Over Sabine-Forest Merger

"A bankruptcy judge on Thursday handed Sabine Oil & Gas Corp. a decisive victory over its creditors, blocking their bid to step into the company's shoes to sue over its failed merger with Forest Oil Corp. (FST).

Junior creditors who alleged the merger was engineered to short-change them failed to show that many of their potential claims against Sabine and others have a reasonable chance of success at trial, Judge Shelley Chapman of the U.S. Bankruptcy Court in Manhattan said. For other claims, which were deemed plausible, the judge said the costs of the litigation would outweigh any benefits."

This article appeared in its entirety in the March 24, 2016 edition of Dow Jones – Bankruptcy & Debt.