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U.S. Chesapeake Energy to exit bankruptcy after judge approved reorganization plan

Chesapeake Energy will emerge from bankruptcy with about $3 billion in new financing.

U.S. Chesapeake Energy to exit bankruptcy after judge approved reorganization plan

Oklahoma, January 14 - Neftegaz.RU. U.S. oil and gas producer Chesapeake Energy's bankruptcy plan was approved by a U.S. judge, clearing the way for the company to operate without court oversight soon.

The judge dismissed arguments from some unsecured creditors that Chesapeake already had designed a 2019 debt restructuring and delayed its filing to improperly benefit mutual fund provider Franklin Advisers and other big debtholders.

Chesapeake will emerge from bankruptcy with about $3 billion in new financing, a $7 billion reduction in debt, and eliminating $1.7 billion in gas processing and pipeline costs, under the plan endorsed by the court.

Chesapeake spokesman Gordon Pennoyer said:
  • We initiated our restructuring process to fundamentally reset our company and emerge a stronger and more competitive enterprise
  • With today’s confirmation of our plan, we are well on our way to achieving that objective
  • We greatly appreciate the court’s thorough consideration of our case and look forward to concluding this process as expeditiously as possible
Once the 2nd-largest U.S. natural gas producer, Chesapeake filed for court protection last June, weighed down by debts from years of overspending on assets and from a sudden decline in energy demand and prices spurred by the coronavirus pandemic.

In a filing with regulators it made earlier this year, Chesapeake stated it planned to continue operating in the Marcellus Shale field of the Appalachia Basin, the Eagle Ford Shale in the Rio Grande and Brazos River fields of Texas, the Haynesville Shale field in Louisiana and within the Powder River Basin in Wyoming.

To read the news in Russian.

Source : Neftegaz.RU


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