Natural gas producer Arsenal Energy Holdings LLC won bankruptcy court approval for its second prepackaged restructuring this year, cutting roughly $400 million in debt and turning creditors into shareholders, WSJ Pro Bankruptcy reported. Bankruptcy Judge Brendan Shannon yesterday approved a reorganization plan backed by all major lenders after all objections were resolved. The approval gives Wexford, Pa.-based Arsenal the green light to exit bankruptcy again. The restructuring will wipe out the equity stakes of First Reserve Management LP, Northwestern Mutual Life Insurance Co. and Goldman Sachs Group Inc.’s private-equity arm, which took control of Arsenal after its last bankruptcy. Arsenal filed for chapter 11 bankruptcy in November for a second time this year, blaming falling natural gas prices, tightening lending standards and high transportation costs. Both filings accompanied a pre-packaged chapter 11 proposal.
