KKR's Samson Resources plans to file for Chapter 11 bankruptcy protection by mid-September, the latest sign of the pain in the energy sector amid diving prices, sources confirmed to CNBC on Friday.
Samson—an oil and natural gas producer—would hand ownership to its lenders with the move, which was first reported by The Wall Street Journal The firm nailed down a plan with creditors Friday, and its board approved the restructuring, sources told the newspaper.
It would deal a blow to private equity firm KKR, which spearheaded a $7.2 billion buyout of Samson in 2011.
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Samson would become the latest in a string of companies to file for bankruptcy protection in an increasingly difficult oil and gas environment. Benchmark U.S. crude oil prices have been slashed by more than 50 percent in the last year, and natural gas has plunged, as well.
Samson has lost more than $4.5 billion since the buyout, according to the Journal.
Under the reported deal, second-lien lenders are slated to control the company and receive $125 million in new loans. Bondholders could inject nearly $500 million in new cash, meant to stabilize Samson's finances and chip away at existing loans.
"Given the industry downturn and impact of the volatile commodity environment, this is the right next step for Samson," KKR told CNBC in a statement. "KKR is grateful for the hard work and dedication of management and the many employees at Samson."
—CNBC's Kate Kelly contributed to this report