Samson Resources emerges from bankruptcy

March 02, 2017

TULSA, Oklahoma -- Samson Resources Corporation has announced that the Company and its subsidiaries have emerged from Chapter 11 bankruptcy protection, after satisfying all of the conditions required under its Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on Feb. 13, 2017.

Under the Plan, substantially all of SRC’s remaining assets, including its subsidiaries, were transferred to Samson Resources II, LLC. The majority of the equity in Samson II was distributed to SRC’s second lien lenders, both on account of their claims in the bankruptcy and in connection with a $60 million rights offering. In addition, Joseph A. Mills has been officially appointed by the new board of directors as Samson II’s president and CEO, succeeding Andrew Kidd, who accepted the position in February 2016, having previously served as General Counsel.

Samson II features a substantially improved financial position, having discharged approximately $4 billion of debt and nearly $300 million of annual interest expense under the Plan. Samson II’s post-emergence debt financing consists of a first lien revolving credit facility with an initial borrowing base of $280 million, of which $245 million was outstanding on the effective date. With the completion of its restructuring, the Company has greater than $60 million in total liquidity (including both cash on hand and available under the credit facility), a business plan that projects positive free cash flow, and substantial commodity hedges to protect that liquidity position.