JPMorgan Chase Bank filed with the U.S. Bankruptcy Court an objection to Samson Resources’ official committee of unsecured creditors’ motion for entry of order granting exclusive standing and authority to commence, prosecute and settle certain claims and causes of action on behalf of the Debtors’ estates.
The objection asserts, “Today, the Committee would have this Court believe that a wide assortment of Wall Street’s most sophisticated financial parties, namely the sponsors, the lenders, and the bondholders (who are now the Committee’s primary constituency) completely misunderstood the value of the Debtors when placing billions of dollars of their own money at risk. The Committee asks this Court instead to believe that – never mind the occurrence of one of the largest collapses in hydrocarbon prices over the past twenty years – Samson actually was doomed to fail because the 2011 Transactions left the company insolvent.”
The objection continues, “With respect to its fraudulent transfer claims specifically, the Committee acknowledges that it has unearthed no evidence of actual fraud; instead, it seeks to use a fantastical solvency analysis to try to rewrite the history of the 2011 Transactions….In addition, the Committee’s Motion should be denied because the Debtors’ decision not to pursue the Committee’s purported claims was entirely justified. The Debtors concluded that challenging the 2011 Transactions is not a sensible application of estate resources.”
JPMorgan continues, “The Committee cannot simultaneously serve two masters by asserting claims on behalf of the Debtors’ entire estates while, at the same time, also zealously representing the narrow interests of its own constituents, especially as all but a very small percentage of them ratified the transactions at issue here. Its Motion must therefore be denied.”
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