Finance - Restructuring
The 17-month downturn in oil prices is generating much work for bankers and attorneys, Reuters said. Many law firms and banks began reshuffling staff this summer.
CGG’s options are to increase capital or attract new investors to finance a planned reorganization, sources told Reuters, adding that a formal announcement is expected next week.
The revisions, which received last-minute backing from second-lien lenders, include lowering the threshold payout for some executives and moving up the date for a bankruptcy confirmation hearing, Reuters said.
TPH has formed similar consulting alliances with other restructuring advisers, one of the people said Nov. 25.
"Blackhill Partners' long history of serving energy companies in difficult situations allows us to provide the leadership required in this highly complex bankruptcy," said managing director Jeff Jones.
While the company has about $5 billion in liquidity, Noble wants to be cash flow neutral in 2016 and continue to ramp up in its new Texas shale acquisitions.
Samson has arranged a deal with some of its lenders to eliminate debt and provide new equity investment, though owner KKR will lose its stake in the company.
Samson engaged Blackstone Advisory Partners as its investment banker and Alvarez & Marsal North America as its restructuring adviser. Samson’s restructuring counsel is Kirkland & Ellis, Reuters said.
The companies’ assets have over time included areas on the U.S. Gulf Coast and in California, the Illinois Basin, Texas and Louisiana, according to ERG Resources LLC’s website.
Samson Resources Corp.’s lenders target restructuring deal for $4.15 billion debt. A $110 million interest payment on bonds is due Aug. 15, people with knowledge of private matter told Bloomberg.
Chairman and CEO Thomas F. Cooke said the company hopes the Chapter 11 filing will “avert adverse action by Harvest Operating” which holds a $3.7 million arbitration award against Saratoga.