Oklahoma-based Samson Resources Corporation said Wednesday that is has filed for Chapter 11 bankruptcy and won lender support to move forward with a restructuring plan.
The company said its restructuring plan garnered support form more than 68 percent of its second lien lenders.
“The proposed restructuring contemplates a significant deleveraging of the business and will provide the company with at least $450 million of new capital,” Samson said.
According to Reuters, the company listed assets and liabilities of more than $1 billion in its bankruptcy filing.
“We are confident the successful restructuring will have long term benefits for our employees, vendors and business partners and are committed to upholding our commitments to these stakeholders as we work to achieve our financial goals,” CEO Randy Limbacher said.
In conjunction with petitions filed on September 16 in the United States Bankruptcy Court for the District of Delaware, Samson Resources filed a series of motions that would allow the company to continue normal operations throughout the Chapter 11 process.
Those motions must still receive court approval.
The motions would allow Samson to keep producing oil and gas from its existing operations, pay employee wages, honor existing employee benefit programs and pay royalties to mineral owners under the current terms of these agreements.
The company has also filed a motion seeking authority to pay operating expenses associated with production activities, joint interest billings for non-operated properties, marketing expenses, shipping and storage costs, payments for any goods delivered to the company within 20 days prior to the filing and payments for goods ordered prior to the filing but not yet delivered.
Samson said it won a commitment from second lien lenders, including Silver Point, Cerberus and Anschutz, to provide at least $450 million of new capital to increase liquidity post-reorganization and permanently pay down existing first lien debt.
That investment may be increased under certain circumstances to $485 million to further boost liquidity.
The company’s second lien lenders, together with the second lien lenders who are backstopping the equity rights offering, will own “substantially all of the equity” in the reorganized company.
All second lien lenders will also have the right to participate in the new money investment, Samson added.