Elbrus Fund Buys Petroceltic Debt as Takeover Moves Closer

  • Elbrus bought 32% of Petroceltic's debt from Worldview: filing
  • Energy explorer Petroceltic recommends takeover acceptance

A fund tied to Elbrus Capital Partners LLP, a London-based money manager, bought a share of Petroceltic International Plc’s $233 million of debt as the oil and gas explorer moved closer to being taken over.

The fund, Elbrus Capital (Cayman) Ltd., purchased about 32 percent of the debt from Worldview Capital Management LLP, according to a filing by Dublin-based Petroceltic. The energy company had originally borrowed from lenders including HSBC Holdings Plc before filing for protection from creditors last month.

The deal is one of the latest twists in the unraveling of Petroceltic, which sought to produce gas at the Ain Tsila field in Algeria before energy prices collapsed and activist shareholder Worldview began a battle for control of the company. Petroceltic’s directors advised shareholders on Wednesday to accept a 3 pence-per-share takeover bid from Worldview, which is controlled by ex-Deutsche Bank AG proprietary trader Angelo Moskov.

Elbrus is run from London by Jack Arnoff and Jury Ostrowsky, according to filings with the U.K. Companies House. Arnoff declined to comment.

Worldview, based in London, still controls about 37 percent of Petroceltic’s debt, filings show. Moskov’s fund purchased the loans from HSBC and International Finance Corp., an arm of the World Bank, for about 30 cents on the dollar, people familiar with the matter said last month. Other remaining lenders include Standard Chartered Plc and Nedbank Group Ltd., according to the filings.

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