The Fifth Circuit revived a contract dispute between oil driller Mesquite Energy Inc., related to its predecessor’s bankruptcy, and a midstream services provider.
Carnero G&P LLC challenged restructuring agreements made after a bankruptcy plan was approved between Mesquite, formerly known as Sanchez Energy Corp., and other providers to lower costs for marketing, gathering, processing and transportation of natural gas liquids, oil and gas. The US Bankruptcy Court for the Southern District of Texas lacked jurisdiction to settle state law claims alleging breach of contract, a three-judge appellate panel ruled Thursday.
Mesquite came under the control of Apollo Global Management and ...