Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Samson Resources to File for Bankruptcy Protection

Author: Joel R. Glucksman

Date: September 11, 2015

Key Contacts

Back

Last week, Samson Resources Corp., one of the largest oil and gas companies in the country, announced plans to file for Chapter 11 bankruptcy protection.

According to Oil and Gas Investor magazine, Samson Resources will reach a deal with lenders to restructure its $4.15 billion debt.

Samson Resources falls into 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.

The restructuring plan

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.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
How Understanding Bankruptcy Trends Can Benefit Your Business post image

How Understanding Bankruptcy Trends Can Benefit Your Business

The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]

Author: Brian D. Spector

Link to post with title - "How Understanding Bankruptcy Trends Can Benefit Your Business"
SEC Takes Actions Against Issuers for Failure to File Form D post image

SEC Takes Actions Against Issuers for Failure to File Form D

In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]

Author: Kenneth C. Oh

Link to post with title - "SEC Takes Actions Against Issuers for Failure to File Form D"
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda post image

Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda

On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]

Author: Matthew F. Mimnaugh

Link to post with title - "Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda"
What Are FIRPTA Withholding Requirements? post image

What Are FIRPTA Withholding Requirements?

If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]

Author: Jesse M. Dimitro

Link to post with title - "What Are FIRPTA Withholding Requirements?"
Does Your Homeowners Insurance Provide Adequate Coverage? post image

Does Your Homeowners Insurance Provide Adequate Coverage?

Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]

Author: Jesse M. Dimitro

Link to post with title - "Does Your Homeowners Insurance Provide Adequate Coverage?"
Understanding the Importance of a Non-Contingent Offer post image

Understanding the Importance of a Non-Contingent Offer

Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]

Author: Jesse M. Dimitro

Link to post with title - "Understanding the Importance of a Non-Contingent Offer"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

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!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: