Samson Resources’ official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion for entry of an order terminating the exclusive periods during which the Debtors may file a Chapter 11 plan and solicit acceptances thereof.
The motion explains, “On May 16, 2016, without any negotiation or input from the Committee, the Debtors filed a chapter 11 plan that largely adopts the negotiating position of the putative first lien lenders, hands those lenders tens of millions of dollars of unencumbered assets, grants the lenders releases without just compensation to the estates, purports to ‘preserve’ the secured lenders’ long-dead adequate protection claims, and wrongfully provides free releases to the Debtors’ equity sponsors. Making matters worse, the Debtors’ newest plan attempts to force unsecured creditors to accept all of its terms through a coercive death-trap mechanism that places all unsecured creditors at risk of receiving no recovery at all if they vote to reject the plan.”
The motion continues, “To be clear, the Debtors’ Amended Plan tacitly acknowledges two serious flaws in their first plan and the validity of two of the three principles laid out by unsecured creditors from the outset….For the foregoing reasons, the Debtors’ Exclusive Periods should be terminated to permit the Committee’s Alternate Plan to proceed to confirmation on a parallel path with that of the Debtors’ Amended Plan.” The Court scheduled a June 7, 2016 hearing to consider the motion, with objections due by May 31, 2016. The committee also petitioned the Court to file under seal certain information related to this motion.
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