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Samson Resources Severance Program Approval Sought

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According to the U.S. Bankruptcy Court docket, Samson Resources a motion to approve the non-insider incentive program and non-officer severance program.

The motion explains, “Significantly, the Debtors seek authority to make, at most, approximately $6.3 million in incentive payments in the first eight and a half months of 2016 – approximately $2.3 million less in incentive payments than they would if they had not updated their non-insider incentive program. The reduced amount is due, in part, to a smaller participant pool and lower overall headcount. Second, the Debtors altered the payment schedule, with payments under the program payable on the date an order is entered confirming a chapter 11 plan (or the date of the closing of a sale of substantially all of the Debtors’ assets); provided that if there has been no order entered confirming a chapter 11 plan (or the sale of substantially all of the Debtors’ assets has not closed) by August 15, 2016, 75 % of the payments shall be payable on August 15, 2016, and 25 % shall be payable as of the date an order is entered confirming a chapter 11 plan (or the date of the closing of a sale of substantially all of the Debtors’ assets).”

The motion continues, “Payments are earned if – and only if – the employees remain employed by the Debtors as of such payment dates. With these changes, the non-insider incentive compensation program will continue to encourage and reward exceptional performance by all of the non-insiders.…The aggregate dollar amounts potentially payable under non-insider incentive program will not exceed approximately $6.3 million. The Debtors will separately file a motion seeking authority to make incentive payments to their insiders for 2016.” The Court scheduled a February 22, 2016 hearing, with objections due by February 12, 2016.

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