
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: September 11, 2015
Partner
201-896-7095 jglucksman@sh-law.comAccording to Oil and Gas Investor magazine, Samson Resources will reach a deal with lenders to restructure its $4.15 billion debt.
The company is one of several fracking organizations across the country that are struggling with high levels of production and low demand, which is driving down prices. As a result, Samson Resources informed creditors that it will not be able to fulfill its $110 million interest payment on its unsecured bonds by Aug. 15.
According to the New York Post, KKR & Co., the parent company of Samson Resources, claimed it stands to lose its $2 billion investment in the natural gas producer. KKR bought the company in 2011 for $7.2 billion, but the Post reported that the firm saddled Samson Resources with over $3.6 billion in debt.
As a result, the Trade Reporting and Compliance Engine reported that Samson Resources’ 9.75 percent senior unsecured bonds recently traded at 4.5 cents on the dollar, representing a 34 cent drop from 2014. Compounding this collapse was the fact that Samson’s $1 billion term loan due in 2018 was recently quoted at 33.3 cents on the dollar, falling from 78.6 cents from the start of the year.
In court papers, the company claimed that second-lien lenders led by Cerberus Capital Management, Silver Point Capital and Credit Suisse will take control of the company with a combination of senior notes and equity in exchange for loans as part of a prepackaged bankruptcy agreement. The creditors will then invest more than $300 million to pay down the $947 million owed to senior lenders, while senior lenders will issue new loans to Samson during the restructuring process to maintain operations. The Post also reported that the $2.25 billion owed to junior lenders will be wiped out.
Similarly, the company is also seeking agreements with two groups of creditors to inject additional capital that would enable Samson to service the remainder of its debt obligations following bankruptcy proceedings.
Currently, senior lenders are in the process of developing an alternative plan that would hand over company control in a court restructuring process, which would significantly reduce value for lower-ranking investors.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!