Samson Is Worst of the Bad 2015 Distressed-Debt Trades: Chartby
Here’s a look at the worst of the worst distressed-debt investments of this year, Samson Resources Corp.
The bankrupt KKR & Co.-owned oil and natural gas producer’s $2.25 billion of senior unsecured notes -- first issued in 2012 -- were trading near par in July 2014. Eleven months later they were virtually worthless. The Tulsa, Oklahoma-based company loaded up on debt following KKR’s 2011 leveraged buyout, which added $3.8 billion in obligations to its books. Now, Samson creditors -- including Oaktree Capital Group LLC, Blackstone Group LP and Cerberus Capital Management LP -- are fighting over who will gain control of the company and for what price. The question they face is whether continued low oil prices have mortally wounded the business or if there’s a rebound in the offing. Those notes? They traded this month for 0.25 cent on the dollar.
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