Struggling oil-and-gas producer Samson Resources Corp. is weighing whether to slash its $4.2 billion debt load through a bankruptcy restructuring or take a rescue loan from a group of junior creditors, the Wall Street Journal reported today. Samson, based in Tulsa, Okla., said in March that a chapter 11 filing might offer the best route to restructure its heavy debt load, a legacy of a 2011 leveraged buyout led by private-equity firm KKR & Co. The company is now in talks with a pair of creditor groups on different debt-restructuring options, including one that would at least temporarily keep it out of bankruptcy court. Junior bondholders including GSO Capital Partners LP and Centerbridge Partners LP have offered to exchange their notes at a discount for higher-ranking debt. Meanwhile, a group of Samson lenders including Cerberus Capital Management LP has offered to exchange its debt for ownership in the company through a chapter 11 restructuring. That plan would wipe out Samson shareholders, including KKR, and junior creditors. Read more. (Subscription required.)
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