KKR owned Samson Resources, an oil and gas producer, announced that, after gaining support for its proposed restructuring plan from more than 68% of its second lien lenders, it has taken the next step in implementing its previously announced financial restructuring by beginning a voluntary, pre-arranged process under Chapter 11. The proposed restructuring contemplates a significant deleveraging of the business and will provide the company with at least $450 million of new capital.

According to a related Wall Street Journal report, private equity firm KKR led a $7.2 billion leveraged buyout of Samson in 2011, the biggest-ever such deal for an oil and gas producer. The Journal noted that the bankruptcy plan could wipe out KKR’s roughly $4.1 billion investment in the company.

Samson said it has obtained a commitment from second lien lenders, including Silver Point, Cerberus and Anschutz, to provide at least $450 million of new capital to increase liquidity post-reorganization and permanently pay down existing first lien debt. This investment may be increased under certain circumstances to $485 million to further bolster liquidity.

As part of the restructuring and recapitalization, Samson Resources’ second lien lenders, together with the second lien lenders that are backstopping the equity rights offering, will own substantially all of the equity in the reorganized company and all second lien lenders will have the right to participate in the new money investment. The RSA contemplates a hearing to consider confirmation of the Company’s Plan of Reorganization by December 1, 2015.

“The steps we are taking will allow our Company to maximize future opportunities and compete more effectively with significantly less debt on our balance sheet,” said Randy Limbacher, chief executive officer of Samson Resources. “We are confident the successful restructuring will have long-term benefits for our employees, vendors and business partners and are committed to upholding our commitments to these stakeholders as we work to achieve our financial goals. We fully expect to operate our business as usual throughout this process and to emerge as a financially stronger company.”