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Texas-based driller Arena Energy files for bankruptcy with debts of more than $1bn

The Gulf of Mexico operator, looking to restructure more than $1bn in debt, has a $64m deal to sell virtually all of its assets

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Arena Energy has filed for bankruptcy with a plan to sell virtually all of its assets to private-equity firm Lime Rock Partners and a management group in a deal that includes $64.2m in cash.

The Texas-based driller, which operates in the Gulf of Mexico, filed for chapter 11 protection on 20 August in U. Bankruptcy Court in Houston to restructure more than $1bn debt.

Arena was founded in 1999 and controls about 341,000 acres in the Gulf of Mexico.

The company’s bankruptcy comes less than a month after its reserve-based loan matured. It hasn’t made interest payments on that debt since late March to preserve liquidity.

In court records, Arena said that like many of its peers, it has been challenged in recent years by the downturn and volatility in the commodities market.

Those problems, it said, have been exacerbated in recent months by a drop in global energy prices and market uncertainty due to the combined effects of the coronavirus pandemic and a price war between Saudi Arabia and Russia.

Arena has 57 employees and had $580.8m in revenue last year. Its biggest unsecured creditors include the US Small Business Administration, which is owed $1.8m.

Lime Rock, with offices in Texas and Connecticut, is a buyout firm with a focus on oil-and-gas companies. The private-equity firm counts stakes in Prime Rock Resources, Augustus Energy Partners II and Crown Rock among its holdings of oil-and-gas drillers and services companies.

The restructuring agreement leaves open the possibility that other potential buyers could emerge and have their offers considered. But no formal competitive bidding process has been set up in the Arena case, a process that is common in large bankruptcies.

The lack of formal bid procedures could hinder transparency, which is particularly critical since insiders remain involved in the new prospective ownership group, said Philip Eisenberg, a lawyer for one potential bidder, W&T Offshore. The interest of competing bidders could be chilled without a more traditional bid setup and sharing of information, he said.

“We have some serious concerns about the process,” Eisenberg told Judge Marvin Isgur during Arena’s debut in bankruptcy court on 21 August.

Judge Isgur said that perhaps W&T would still appear in the chapter 11 case with a better offer for Arena.

Brian Resnick, a representative for the proposed buyer, said the restructuring agreement that Arena has in hand helps eliminate uncertainty during the bankruptcy. The negotiations occurred with tremendous separation from the insiders, he said.

Judge Isgur ended the hearing by asking the parties to be prompt in responding to reasonable requests for information.

Arena enters bankruptcy with a restructuring agreement that is supported by 72% of its reserve-based facility lenders and 94% of term-loan lenders. The deal must be approved by bankruptcy court.

Reserved-based lenders are expected to recoup between 10 cents and 20 cents on the dollar of the nearly $630 million they are owed. Arena’s term lenders are expected to receive about 2 cents on the dollar of the $439 million they are owed.

 The proposed deal includes the assumption of certain liabilities.Arena is owned by a small group of current or former employees and their family members.

Representing Arena and related entities in their bankruptcies are law firms Jackson Walker and Kirkland & Ellis. Its financial adviser is Evercore Group. Alvarez & Marsal North America is its restructuring adviser.

 This article was published by The Wall Street Journal.

Source: https://www.penews.com/articles/texas-based-driller-arena-energy-files-for-bankruptcy-with-debts-of-more-than-1bn-20200824

Private Equity

20VC: Sequoia’s Roelof Botha on His Biggest Lessons Working Alongside Don Valentine, Mike Moritz and Doug Leone, Leading Sequoia’s US Business and What Sequoia Do To Retain Their Edge at the Top & The Crucible Moments That Define Startup Success

Roleof Botha is a Partner @ Sequoia Capital, one of the world’s leading venture firms with a portfolio including the likes of Airbnb, Instacart, Stripe, UiPath, Zoom, the list goes on. As for Roelof, at Sequoia he has led rounds into the likes of YouTube, Instagram, Eventbrite, Square, MongoDB, 23andMe and Unity Technologies to name a few. Before joining the

The post 20VC: Sequoia’s Roelof Botha on His Biggest Lessons Working Alongside Don Valentine, Mike Moritz and Doug Leone, Leading Sequoia’s US Business and What Sequoia Do To Retain Their Edge at the Top & The Crucible Moments That Define Startup Success appeared first on The Twenty Minute VC.

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Roleof Botha is a Partner @ Sequoia Capital, one of the world’s leading venture firms with a portfolio including the likes of Airbnb, Instacart, Stripe, UiPath, Zoom, the list goes on. As for Roelof, at Sequoia he has led rounds into the likes of YouTube, Instagram, Eventbrite, Square, MongoDB, 23andMe and Unity Technologies to name a few. Before joining the world of venture, Roelof was the CFO @ Paypal playing a key role in their hyper-growth from 2000-2003.

CLICK TO LISTEN ON ITUNES

In Today’s Episode You Will Learn:

1.) How did Roelof go from actuary in South Africa to CFO @ Paypal? What were his biggest lessons from seeing Paypal burn $10M per month? How did Paypal lead to his joining Sequoia as a Partner?

2.) Market Evaluation: Does Roelof agree that the market is crazy today? How does today compare to prior vintages? How does Roelof assess the compression of fundraising timelines? With compressed timelines, how does he build relationships of trust with founders?

3.) Founder Evaluation: What were Roelof’s lessons on founder assessment from Don Valentine? What matrix did Don teach Roelof to assess founders on? How does Roelof feel about the rise of competitive rounds? When should founders take them vs remain heads down on execution?

4.) Investment Mentality: How did Roelof prevent becoming too confident when early investments went well? How does Roelof prevent relying on past failures as a reason for turning down opportunities today? What can investors do to retain a very flexible mind? Why does Roelof believe you are only as good as your next investment?

5.) Sequoia’s Edge: How does Roloef think about what it takes for Sequoia to retain it’s edge at the top? How does Roloef measure the success of the Sequoia scout program? How did they structure it? How has the structure changed? What do they plan to do moving forward?

6.) Board Membership: How would Roloef evaluate his current style of board membership? How has that style changed over time? What elements did he find challenging? What advice would Roelof give to new board members adopting their first board seats?

Items Mentioned In Today’s Show:

Roelof’s Favourite Book: Man’s Search For Meaning

Roelof’s Most Recent Investment: mmhmm

As always you can follow Harry and The Twenty Minute VC on Twitter here!

Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.

Source: https://thetwentyminutevc.com/roelofbotha/

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Private Equity

Private equity investor Centerbridge Partners backs Syncapay’s acquisition of Wirecard North America

From: FinTech Global Syncapay has announced that it has bought Wirecard North America, marking another page in the story of the collapse of the scandal-ridden former FinTech giant. Wirecard imploded this summer after a suspected multi-billion dollar fraud was unearthed. Since then the company, which was once hailed as one of Germany’s biggest FinTech success […]

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From: FinTech Global
Syncapay has announced that it has bought Wirecard North America, marking another page in the story

Source: https://www.altassets.net/private-equity-news/by-news-type/deal-news/private-equity-investor-centerbridge-partners-backs-syncapays-acquisition-of-wirecard-north-america.html

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Private Equity

Gulf Capital backs CWB as part of $60mln IP platform build

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The post Gulf Capital backs CWB as part of mln IP platform build first appeared on https://africacapitaldigest.com.

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