Samson Encounters Objections in Amended Chapter 11 Bankruptcy

samsonrsources

Tulsa-based Samson Resources has encountered some opposition from the U.S. Trustee in its Chapter 11 bankruptcy case filed last year in the District of Delaware. At the same time, the Department of Interior is objecting too.

The Interior Department told the judge in the case that Samson Resources corp. must pay $136.9 million and get the department’s permission before the company can sell certain oil and gas rights.

The federal agency also said four of six sales proposed by Samson concern oil and gas leases on federal and Native American land and the firm has to pay all owed royalties and reclamation and decommissioning costs.

The Trustee assigned to the case and EnerVest Operating filed separate objections this week with Samson Resources’ Disclosure statement for its Second Amended Joint Plan of Reorganization.

“The Disclosure statement does not contain ‘adequate information’ for the voting classes on a number of issues, including a lack of detail on post-confirmation oversight and conduct of the proposed Settlement Trust and what assets will remain to be reorganized after the Asset Sales have taken place,” said the Trustee. “Although the Plan and Disclosure statement describe how the Settlement Trust will be funded, there are no disclosures as to what the amount of initial funding will be.”

The objection also charged that while the Statement discusses proposed sales and identifies the Debtors assets but it does not address what assets will remain after the sales take place.

Samson originally filed Chapter 11 bankruptcy in September of 2015, then filed an amended plan in May because of the continued drop in gas prices during its bankruptcy case. The amended filing stated the new plan would give Samson a fresh start.

 

 

 

 

 

%d bloggers like this: