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retained earnings deficit of $55,279,302 and reduced paid-in
capital by $6,404,957.
The purpose of CDC's amended plan was to ensure that its
creditors received as much as possible in the ultimate sale of
CDC's assets or stock.
The Samson Acquisition
Samson was created and incorporated on June 26, 1986.3 At
the time it acquired CDC, Samson, together with its affiliated
subsidiaries, was a privately held diversified group of
corporations. While some members of the Samson group had been
involved in the oil and natural gas industry as working interest
owners and operators of oil and natural gas properties, the
historical businesses of the Samson group did not include
contract drilling. The Samson group's practice had been to hire
drilling contractors to supply the drilling rigs, drilling rig
equipment, and rig crews necessary to drill the wells it operated
or jointly owned.
By late 1985 or early 1986, the Samson group determined that
market conditions made it an economically attractive time to
examine the prospect of acquiring drilling rigs or contract
drilling businesses. In 1986, rigs and rig equipment could be
acquired through negotiated asset purchases, auctions, and
acquisitions of drilling companies.
3 On June 26, 1986, the Samson group formed Samson
Investment Co. as a holding company. However, members of the
Samson group had been engaged in the oil and gas business since
1971.
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