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Friday, 08/14/2015 8:53:10 PM

Friday, August 14, 2015 8:53:10 PM

Post# of 5118
private Samson Resources to file Ch 11 soon

CNBC 5:34pm ET
KKR's oil biz Samson Resources to file Ch 11, soon: DJ, citing sources

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Prob just first of many of this size to bite it or merge. Thought this was SSN Samson Oil & Gas but they are diff tho SSN none too great shape.
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NY Post
Henry Kravis’ Samson Resources has run out of gas.
The fracking outfit, based in Kravis’ hometown of Tulsa, Okla., is planning to file for bankruptcy protection within days, The Post has learned. KKR is set to lose its roughly $2 billion investment in the firm, confirming an exclusive June 1 report in The Post.
Samson and other fracking companies that drill for natural gas in shale rock are struggling with higher production, which is driving down prices.
Cerberus Capital Management, Silver Point Capital and Credit Suisse are among the second-lien lenders that hold about $1 billion of debt and will take over the business in exchange for their loans as part of a so-called prepackaged bankruptcy, two sources close to the situation said.
They’ll invest another roughly $300 million to pay some senior lenders owed $947 million. Senior lenders including JPMorgan will issue new loans in the restructured company.
“At a certain valuation the company has producing reserves and investing new money makes sense,” a source said.
Junior lenders owed $2.25 billion will be wiped out, along with equity holder KKR. KKR led the $7.2 billion buyout of Samson in 2011, saddling the company with about $3.6 billion of debt.
Samson declined to comment.

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