What does bankruptcy mean for royalty owners? Samson Resources... owned by KKR... seems to be ready to file Chapter 11. Several articles have been written about this in the past month. But i hear other companies are on the verge. Of course it doesn't help when the Saudis declared victory over the U.S. in the energy war.
Thank you Kathy.
thanks, Kathy. i went through the same thing with GMX. monthly payments have gone down dramatically. i hope Sabine/Forest stay solvent. i hate to see them go down.
Our monthly payments have also gone down dramatically. When we called them, they said it was because of the price of natural gas being low. We are not sure of their reply. It went down too suddenly.
This is really disappointing. It seems to be out of our control.
Kathy M: Sabine check totals are way down... payments delayed until the next month and the transportation costs are at least 35%. I called about the delayed royalty payments and was told it was a management decision. Then we noticed the very high transportation costs. That's when we sent a letter seeking an explanation. i'd hate to see them go under.
Does that mean we won't get a royalty check this month? How can a company keep money that belongs to the royalty owners? This is really starting to smell bad.
No, you'll get your checks unless something unusual happens. no one has declared bankruptcy. just having troubles.
If you're receiving royalty from Samson and Samson goes bankrupt, you'd best file a claim. True or False.
If you don't file a claim and you don't get paid, you can cancel the lease after timely demend. True or False.
If your lease form states, as many do, that the lessee's bankruptcy auto-cancells the lease, the bankruptcy court overrides this provision. True or False.
Samson's bankruptcy would freeze the lease to the extent it doesn't expire under its own terms. True or False
Harold: i think answer to #1 is true. question #2 not necessarily. question #3 bankruptcy court can do just about anything it wants. question #4 maybe... depends on what the bankruptcy judge decides. i'm just guessing on all of my answers.