Cobalt International Energy Inc. is facing objections to its attempts to tackle nearly $2.8 billion in debt through a bankruptcy-payout plan, WSJ Pro Bankruptcy reported. Dragged into distress by a tough energy market and fumbled attempts to sell its Angolan interests, Cobalt filed for chapter 11 bankruptcy protection Dec. 14, having reached no agreements — except one — with creditors. The exception was a decision to put Cobalt’s oil-and-gas interests in the Gulf of Mexico on the bankruptcy-auction block. Results of that auction, a disappointing $580 million, won’t go far to address the company’s mountain of debt. Cobalt also has a $500 million settlement with Angola’s state-controlled energy group, Sociedade Nacional de Combustíveis de Angola - Empresa Pública, or Sonangol, to collect, and distribute to creditors. A chapter 11 plan set for confirmation hearings next week will pay more than $550 million in first-lien debts in full and cover half or more of $900 million in second-lien notes, court papers say.
