Wilbur Ross, known for big investments in distressed industries, is betting that the oil and gas slump has dragged on long enough to shake out weaker players, the Wall Street Journal reported on Saturday. His investment firm, WL Ross & Co., has purchased hundreds of millions of dollars in troubled energy debt in a bid to take control of distressed oil and gas companies if they are forced to hand over ownership to creditors, according to people familiar with the matter. The firm sat out the early innings of the downturn, when other investors pounced on perceived bargains that continued losing value when oil and gas prices fell further. WL Ross is angling to swap debt for ownership in Breitburn Energy Partners LP, which filed for chapter 11 protection in May, and has been buying debt of Permian Resources LLC, a Texas oil producer founded by late wildcatter Aubrey McClendon that might ultimately have to hand at least part-ownership to creditors in a restructuring. Read more. (Subscription required.)
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