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., Dow Jones Daily Bankruptcy Review reported today. Junior creditors who alleged the merger was engineered to shortchange them failed to show that many of their potential claims against Sabine and others have a reasonable chance of success at trial, Bankruptcy Judge Shelley Chapman said junior creditors ruled. For other claims, which were deemed plausible, the judge said that the costs of the litigation would outweigh any benefits.
