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Case Studies

Arena Energy


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  • Chi­ron advised our Client which pro­vid­ed sure­ty bonds to insure plug­ging and aban­don­ment (P&A) oblig­a­tions for Are­na Ener­gy (the Com­pa­ny”)
  • Our Client had sig­nif­i­cant, con­tin­gent unse­cured plug­ging and aban­don­ment bond­ing expo­sure to Are­na Ener­gy (“Com­pa­ny”)
    • Client engaged Chi­ron approx­i­mate­ly a week pri­or to the Com­pa­ny seek­ing Chap­ter 11
    • The Com­pa­ny had already nego­ti­at­ed pre-pack­aged Chap­ter 11 terms with exist­ing secured cred­i­tors with senior secured cred­i­tors receiv­ing $0.10-$0.20 per $1.00 of $600 MM of fund­ed debt
    • The Com­pa­ny had offered the Client insuf­fi­cient cred­it enhance­ment terms, and Client was unable to improve position
    • The Client Goal: enhance terms the Com­pa­ny was offering
  • Chi­ron Trans­ac­tion­al Advi­so­ry Scope
    • Ana­lyze the Company’s reserves, finan­cial con­di­tion, and well-plug­ging lia­bil­i­ties and out­look upon exit­ing Chap­ter 11
    • Nego­ti­ate with the Com­pa­ny, its Advi­sors and its Pri­vate Equi­ty Backer to pro­tect Client’s con­tin­u­ing con­tin­gent unse­cured cred­it exposure


  • Using deep expe­ri­ence in both oil and finance, Chi­ron nego­ti­at­ed a dou­bling of the col­lat­er­al pro­tec­tion for our Client, enabling the Com­pa­ny to file its pre-pack and con­tin­ue its growth while Client was well protected

In an off­shore oil and gas restruc­tur­ing, Chi­ron pro­vid­ed the indus­try knowl­edge and the finan­cial insight need­ed to sub­stan­tial­ly improve our col­lat­er­al pro­tec­tions while still giv­ing the com­pa­ny plen­ty of room for growth. They helped to cre­ate a win-win.” — Bob Kirk, RLI

Arena Logo

The Challenge

Our Client had significant, contingent unsecured plugging and abandonment bonding exposure to Arena Energy (“Company”).

The Chiron Solution

Negotiate with the Company, its Advisors and its Private Equity Backer to protect Client’s continuing contingent unsecured credit exposure.

The Result

Using deep experience in both oil and finance, Chiron negotiated a doubling of the collateral protection for our Client, enabling the Company to file its pre-pack and continue its growth while Client was well protected.

Is your com­pa­ny per­form­ing like it should?