June 12 Oil and gas explorer Penn Virginia Corp
has hired an investment bank to help it explore a
possible sale, less than a year after it emerged from
bankruptcy, as its former creditors seek to cash out, according
to people familiar with the matter.
The move illustrates how distressed debt hedge funds, which
snapped up oil and gas companies' bonds for pennies on the
dollar during the energy price downturn, now hold big stakes in
companies that have exited bankruptcy and are seeking to sell,
as the sector slowly recovers.
Penn Virginia has hired investment bank Jefferies LLC to
help it evaluate strategic alternatives including a potential
sale, the people said on Monday. Talks with potential acquirers
are under way, and a deal is not certain because of the
company's high valuation expectations, the sources added.
The sources asked not to be identified because the deal
negotiations are confidential. Penn Virginia and Jefferies did
not immediately respond to requests for comment.
(Reporting by Jessica Resnick-Ault and Jessica DiNapoli in New
York; Additional reporting by David French in New York; Editing
by Matthew Lewis)