Samson CEO Randy Limbacher Resigns Amid Bankruptcy Setbacksby
Limbacher will leave in December, lawyer for company says
Departure comes as company negotiates restructuring deal
Samson Resources Co. Chief Executive Officer Randy Limbacheris leaving amid disarray in the oil and gas driller’s bankruptcy case.
Limbacher will leave in December, Joshua Sussberg, a lawyer for the company, told a bankruptcy judge at a hearing Thursday in Wilmington, Delaware. Sussberg opened the session telling the judge that Samson’s reorganization effort had suffered a setback because of “several negative things that have happened.”
The attorney went on to blame Samson’s woes on falling gas and oil prices. The Tulsa, Oklahoma-based company and its owners were stung by the collapse when it filed for bankruptcy in September. The price drop drove other producers, such as Sabine Oil & Gas Corp. and Quicksilver Resources Inc., into Chapter 11.
Samson said it would use the bankruptcy to try to shrink its $4.2 billion debt load. Limbacher was hired in April 2013, replacing former CEO David Adams, who left at the end of 2012.
Since filing for bankruptcy in September, Samson has seen the restructuring agreement it had with middle-tier bondholders fall apart and gas prices drop by 30 percent. It now faces the risk that more key executives will leave, Sussberg told U.S. Bankruptcy Judge Christopher Sontchi.
The company also faces strong opposition from lower-ranking, unsecured creditors.
Samson is trying to negotiate a replacement deal, but expects any agreement to be worth less money to creditors than the original, Sussberg said.
Any new transaction “will not be as attractive,” he said.
Samson asked Sontchi for more time to prepare for a court fight with the official committee of unsecured creditors about how the company should use cash that is considered collateral for bank loans.
When it filed for bankruptcy, Samson said it planned to get through the initial phases of the case quickly and seek court approval by Dec. 1 for a reorganization plan that would reduce its $4.2 billion debt.
The case is In re Samson Resources Corp., 15-bk-11934, U.S. Bankruptcy Court, District of Delaware (Wilmington).