Samson Resources Corp., one of the largest energy companies to file for bankruptcy in the commodity downturn, proposed a new chapter 11 exit plan yesterday that would swap ownership of the natural gas producer to banks in return for reductions in the company’s debt, Reuters reported yesterday. The new plan slashes the recovery for junior lenders, who were going to take ownership of the company under a prior proposal that became unworkable as the company's value dwindled during its eight months in bankruptcy. The proposal filed with the U.S. Bankruptcy Court in Wilmington, Delaware, would slash Samson's $4.9 billion in liabilities to approximately $535 million. The banks that would become the owners of Samson include affiliates of JPMorgan Chase & Co., Bank of America Corp., Bank of Montreal, Citigroup Inc (C.N) and Wells Fargo & Co. The lenders would name six of seven directors under the proposed plan. The company also plans to perform a market test of certain holdings to see if it is possible to increase recoveries for creditors through asset sales.
