Multiple parties – including J-W Power Company, the Internal Revenue Service (IRS), Cabot Oil & Gas and USA Compression Partners – filed with the U.S. Bankruptcy Court separate objections to Samson Resources’ Global Settlement Joint Chapter 11 Plan of Reorganization.
The IRS asserts, “The plan should not be confirmed because it provides very extensive and comprehensive non-consensual third-party releases and exculpation clauses that, in effect, insulate a wide array of non-debtors from an even wider array of potential causes of action….Allowing the United States to collect interest on deferred cash payments merely puts the United States in the same place it would be if the Debtors had paid the entire amount due the United States on the effective date of the Plan. The alternative – payments to the United States made over time without interest – results in a ‘forced loan by the government to the debtor(s).’ Yet the plan attempts to bar the payment of postpetition interest.”
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