It tries to reduce its $4.20 million debt, and second-lien lenders would gain the share of all the equity, if the plan goes on. In the past six weeks, six energy companies have defaulted, including Samson and Hercules, Fitch said. “We are confident the successful restructuring will have long-term benefits for our employees, vendors and business partners and are committed to upholding our commitments to these stakeholders as we work to achieve our financial goals”.
Advertisement
Samson Resources filed for chapter 11 bankruptcy protection late Wednesday.
The company, owned by private-equity firm KKR & Co., listed assets and liabilities of more than $1 billion in its bankruptcy filing. The Company is engaged in the exploration, development and production of oil and natural gas properties.
Lenders agreed to cut Samson’s obligations by swapping the $1B they are owed for almost all newly issued stock, and will invest $450M in the company.
The investment by lenders may be further increased, under certain circumstances, by $35 million to improve liquidity, Samson said. A hearing to consider confirmation of the plan is expected by December 1.
Additional information about Samson Resources’ Chapter 11 case is available at www.GardenCityGroup.com/cases/SamsonRestructuring. The Company also has established a dedicated vendor hotline at (918) 591-1306 or [email protected].
Samson’s restructuring plan will still need to be approved by bankruptcy court as well as get a vote from its creditors.
Advertisement
Documents filed with the Court explain, “Oil and gas companies across the United States and around the world are feeling the pressure from the downward spiral in commodity prices, and the fate of many of these companies is yet to be determined”. The Company is represented by Kirkland & Ellis LLP. The Company operates, or has royalty or working interests in, approximately 8,700 oil and gas production sites.
