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Samson Resources Bankruptcy Plan Filed

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Samson Resources’ official committee of unsecured creditors filed with the U.S. Bankruptcy Court a Second Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “Under the Committee’s Plan, if the Acceptance Event occurs, the following shall occur on the Effective Date, in full satisfaction of all First Lien Secured Claims, and in full settlement of all claims, defenses, offsets, and reductions against such Claims (the ‘First Lien Consensual Treatment’): a) the First Lien Secured Claims shall be Allowed in the aggregate amount of $945,145,541.74 million, not subject to any counterclaim, defense, offset, or reduction of any kind.”
In addition, “The Second Lien Secured Claims shall be Allowed in the aggregate amount of $1,011,527,778, not subject to any counterclaim, defense, offset, or reduction of any kind, all of which shall be waived and released….Each holder of an Allowed General Unsecured Claim (provided, that, at the election of the Committee, all Sponsor Management Fee Claims shall either be (i) waived and released, or (ii) allowed as Class 5 General Unsecured Claims and assigned to the Settlement Trust for the benefit of all other Allowed General Unsecured Claims) shall receive its Pro Rata Share of $168.5 million in Cash from the Settlement Trust, provided, that if (and only if) (i) the Effective Date occurs prior to April 30, 2017, and (ii) as of the Effective Date, the proceeds from the sale of Non-Cash Assets that are Unencumbered Assets (excluding the Bidding Procedures Assets) is less than $15 million, then in that event (A) the Cash available for distribution on the Effective Date shall be reduced by the amount of such shortfall, (B) a letter of credit in the amount of such shortfall shall be issued for the benefit of the Settlement Trust under the Exit Facility, and (iii) on April 30, 2017, unless the full amount of such shortfall otherwise has been paid to the Settlement Trust, any remaining shortfall shall be drawn on the letter of credit.”

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