Cobalt International Energy won confirmation of a chapter 11 liquidating plan yesterday, clearing the way to closing on sales of its oil-and-gas assets in the Gulf of Mexico, WSJ Pro Bankruptcy reported. The confirmation decision capped two days of hearings that featured a deal that cleared away objections from unsecured creditors' committee. Announced at a hearing in the U.S. Bankruptcy Court in Houston, Texas, the confirmation decision sets the stage for sales that will pay only the top tiers of the company’s creditors. Cobalt’s Gulf of Mexico holdings fetched only $580 million, after fewer bidders showed up than were expected at a bankruptcy auction. Bankruptcy Judge Marvin Isgur overruled protests from the U.S. Securities and Exchange Commission, which said shareholders were treated unfairly, and from a group of junior bondholders that stand to lose all in the bankruptcy. Bondholders said Cobalt’s sale could have raised $200 million to $300 million more than it did, from deals the company spurned.
