May 18, 2016 Comments (0) Blog, Current Investigations

Update: Samson Resources

(Last Updated On: September 7, 2016)

Have you suffered losses investing in Samson Resources? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

According to their website, Samson Resources is an independent oil and natural gas company headquartered in Tulsa, Oklahoma. The company engages in in the exploration, development and production of oil and natural gas from properties located onshore in the United States.

Samson Resources Corp, one of the largest energy companies to file for bankruptcy in the commodity downturn, proposed a new Chapter 11 exit plan on May 17th that would swap ownership of the natural gas producer to banks in return for reducing debt.

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 has 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.

Samson has struggled for more than a year to reach agreement among its creditors to find a way to reduce its debts in the face of sinking prices for natural gas.

Holders of the company’s second-lien loan and unsecured notes did not support the most recent  proposal, which would give them 5 percent of the equity in the reorganized company if they vote in favor, according to court documents.

The company filed for bankruptcy in September with an agreement to swap equity ownership to holders of its $1 billion second-lien loan. It said at the time it anticipated getting court approval for its plan of reorganization by the end of 2015.

For more information on The White Law Group’s investigation of Samson Resources, click here.

Oil and gas investments are generally speculative and high risk ventures. These types of investments are often better suited for sophisticated and institutional investors that can afford total loss of their investment. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk. The company issued debt to raise capital for its ventures, including the Samson Investment Company 9.75% 2/15/2020 bonds.

Brokers have a responsibility to make investment recommendations that are in line with the client’s net worth, investment experience and objectives. They also have an obligation to to adequately disclose the risks involved in the investment.Unfortunately, brokers sometimes fail to perform the necessary due diligence prior to recommending them to their clients.

To determine whether you may be able to recover investment losses incurred in Samson Resources please contact The White Law Group at (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group visit www.whitesecuritieslaw.com.