I recently received the official bankruptcy documents for Samson Resources. What are some of the best places where a royalty owner could follow the court proceedings? Are other royalty owners still being paid by Samson Resources and/or Samson Lonestar?
Hi, Sheri -
A friend of mine, Loren (Larry) Nauss, is an Attorney in Houston, Texas. He is representing a client of mine, someone who contacted me through The Forum, as a matter of fact, in a matter concerning some royalties in suspense at Samson Lone Star.
He addressed her concerns, which appear to have been similar to yours, just yesterday. With Loren's permission, this is what he wrote:
"From news reports, it looks like they’ve put together a plan for reorganization which, if it gets approved, could have them out by December, which is an unusually quick turnaround, but they’re expected to get a lot of objections from the unsecured creditors and bondholders. The bondholders are really going to get hurt badly, maybe a one percent payout.
Royalties are a debt, but not in the true sense of the word since it’s not money that belongs to the company in the first place. It’s viewed as a trust account held for benefit of the owners in a fiduciary capacity. If they are still paying royalties and the company remains in business it should be OK on a longer term basis.
They have apparently received authorization to pay the mineral and working interest owners this week:
L.R. “Larry” Nauss
Jones Gill LLP
Attorneys at Law
Houston, Texas 77057
You may be able to keep up with events using the chapter11cases.com website.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Thanks so much for your quick and informative response! I am going to visit the websites you suggested. I imagine this is just the start of more to come...i.e. more o/g firms claiming bankruptcy because they have been overextended during the last 18 or so months. Glad to have "met" you via the Forum!
Manager, Benischek Properties, LLC
There is also PACER:
The service is not free, $0.10/ page of documents retrieved. Free if less than $15.00 in a quarter.
This this the official fed court site. A little complicated to use at first, but if you want the filing (which should be sent to you anyway) then this is the place.
I use it occasionally to see if something has been filed that was not sent, what is scheduled, but you should not need it too often.
Sheri, We have gotten our checks every month and I checked on oildex today and they cut our November check today. As I have mentioned on other notes, Samson has increased their expenses to 30%+. At least they are not as bad as Sabine. Kathy
Here is the link to the bankruptcy info page, if you haven't already seen it: http://cases.gcginc.com/SamsonRestructuring/index.php
We just received the "proof of claim" form in the mail. I am probably going to contact the attorney, listed below in the thread, for advise on how to do it correctly (unless we get some advice here in the forum). And to find out if royalty owners even need to do it.
Yes, I also received the form in the last few days. Anything you would be willing to share from the attorney would be very helpful. It seems cases like this usually don't require action on the part of the royalty owner but this situation seems a bit different and I haven't had time to study it in detail. Thanks for your reply!
I wanted to touch base on our Samson royalty checks. Today is the 29th and they still have not cut our Samson check yet according to Oildex. Even with all of their new questionable fees and expenses, our check is still in the low 4 figures so it would be above the "$100 minimum" and they normally cut them around the 25th. If anyone on direct deposit has gotten their check, I would appreciate a response. I hope this is not a bad sign for all of us Samson royalty owners. Thank you, Kathy