Samson Resources parties ordered to mediation to resolve plan issues

By Caroline Salls

Pittsburgh, Dec. 5 – Samson Resources Corp.’s request for appointment of a mediator in an attempt to resolve issues related to the company’s Chapter 11 plan was approved Monday by the U.S. Bankruptcy Court for the District of Delaware.

Judge Kevin Gross will act as mediator.

Mediation must begin before Dec. 8 and continue either until the issues have been resolved or until the parties have been in mediation for at least two days.

“The debtors have made efforts to push these Chapter 11 cases toward a successful resolution, but it has not been possible to date to reach agreement with the [unsecured creditors] committee and other key creditors given the parties’ opposite views on the fundamental issue of lien validity,” Samson said in the motion.

“With the debtors’ plan on file and supported by the second-lien lenders, and with the understanding that the committee will soon be filing a competing Chapter 11 plan, these cases may be headed toward a binary litigated conclusion.”

As previously reported, the committee filed a competing plan on Oct. 19. According to Monday’s order, the mediation will also cover issues regarding the committee’s plan.

The company said it believes that “mediation may be useful in attempting to bridge the gap between the parties.”

Samson said it believes that “it is important that the wheels of mediation be set in motion as soon as possible” so that the process can potentially be completed before the disclosure statement hearing and the extensive confirmation-related discovery that is likely to follow.

Based in Tulsa, Okla., Samson is the largest privately held crude oil and natural gas company in the United States. The company filed for bankruptcy Sept. 16, 2015 under Chapter 11 case number 15-11934.

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