Deals
Forest Oil Bondholders Seek $584 Million in Sabine Deal Suit
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Forest Oil Corp. bondholders claim they were deprived of $584 million when First Reserve Corp. structured a merger to avoid redeeming their debt.
First Reserve acquired Forest, placing it under the management of one of its units, Sabine Oil & Gas Corp., while structuring the agreement to avoid triggering a provision that would have required the bond to be redeemed, the debt holders claimed in a lawsuit Friday in New York state court. The parties to the merger “conspired to conceal the purported work-around” to the change of control, according to bondholder trustee Wilmington Savings Fund Society FSB.