Samson Resources to File for Chapter 11 Bankruptcy Next Month

by San Antonio Attorney

KKR & Co.’s Samson Resources Corp. is close to filing Chapter 11 bankruptcy protection. The company plans is to seek bankruptcy protection next month after a restructuring plan is finalized with its major lenders.

The filing would be the largest corporate sufferer yet of a decline in gas and oil prices, and another indication of failure in energy for the private-equity innovator.

The oil and gas produce would give the control of the company to a group of its creditors. The move would eliminate about $4.1 billion in cash that was invested by KKR and its partners. The private-equity company made a $7.2 billion purchase of a controlling share in a company by its management, using outside capital in 2011. Such deal was the biggest for an oil and gas producer.

Samson’s panel has authorized the restructuring deal on Friday. The energy producer wants to bypass a bond payment scheduled on Monday and utilize the grace period to garner wider creditor support for its course of action.

Samson is the most recent sizable, bad energy investment for KKR. A few years ago, the company together with TGP led a $32 billion deal for TXU Corp. It was the biggest leveraged takeover ever before. After trying to keep the business afloat, it filed for bankruptcy protection in 2014 under its new name Energy Future Holdings Corp.

Samson would be joining several other U.S. oil producers who have filed for Chapter 11 bankruptcy protection, which includes American Eagle Energy Corp., Sabine Oil & Gas and Quicksilver Resources.

If your company has made a bad business bet like KKR, Chapter 11 of the bankruptcy code may be able to help in restructuring debt and finding ways to maximize your finances. Talk to a San Antonio Attorney to find out how your business can survive through bankruptcy.

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