Apollo to Consider Buying Debt to Control Sanchez Energy

  • Written by Kiel Porter for Bloomberg

Apollo Global Management LLC is weighing an investment in struggling oil producer Sanchez Energy Corp.’s debt, according to people with knowledge of the matter.

The New York-based private equity firm is among the potential investors that may buy Sanchez’s debt to take control of the company as part of a restructuring, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The Sanchez family could keep a minority interest under the new shareholding structure, the people said.

Sanchez has a debt load of about $2.4 billion, according to its most recent quarterly filing. It warned in its annual report that it may have to file for bankruptcy.

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