Oil Driller Sucking Fund Into 'Death Spiral,' Judge Told

By Jack Newsham (May 17, 2017, 2:16 PM EDT) -- A fund that lent money to oil and gas driller Camber Energy Inc. only to be sued for converting its debt into Camber stock asked a Texas federal judge on Tuesday to give the fund a way to sell the shares before Camber's "death spiral" whittles the stock price even further.

Camber had sued Discover Growth Fund earlier in May, saying that the offshore lender's conversions were driving Camber toward bankruptcy. Last week U.S. District Judge Sim Lake rejected Camber's request to virtually halt the lender's trading in its shares, saying the facts boiled down to Camber's own "failure to adequately...

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