Loading ...OKLAHOMA CITY – Chesapeake Energy Corp filed for Chapter 11 over the weekend, becoming the largest U.S. oil and gas producer to seek bankruptcy protection in recent years as it bowed to heavy debts and the impact of the coronavirus outbreak on energy markets.
The Oklahoma City-based shale pioneer, co-founded by late wildcatter Aubrey McClendon, submitted the Chapter 11 filing in the US Bankruptcy Court for the Southern District of Texas, according to a company statement.
“Chesapeake intends to use the proceedings to strengthen its balance sheet and restructure its legacy contractual obligations to achieve a more sustainable capital structure,” the statement said, adding its operations would continue during the process.
Under the restructuring plan, Chesapeake will aim to eliminate approximately US$7 billion of its debt.
The company has entered into a restructuring support agreement, which has the full backing of lenders to its main revolving credit facility as well as varying degrees of support from other creditor classes.
Oklahoma shale pioneer Chesapeake Energy files for Chapter 11 protection