Cheasapeake Energy bankruptcy plan approved by U.S. judge
By Reuters Staff January 13, 2021
HOUSTON (Reuters) - U.S. oil and gas producer Chesapeake Energy’s Chapter 11 bankruptcy plan was approved by a U.S. judge on Wednesday, giving lenders control of the company and ending a contentious trial.
Unsecured creditors unsuccessfully opposed approval, arguing the company had already designed a 2019 debt restructuring and delayed its filing to improperly benefit mutual fund provider Franklin Advisers Inc and other big debt holders.
The plan would value Oklahoma-based Chesapeake at about $5.13 billion. Shareholders saw their investment wiped out with the bankruptcy filing.
From the WSJ:
"After approving the company’s plan during a virtual court hearing, Judge Jones addressed Chesapeake Chief Executive Robert Lawler directly, telling him “to remember that a lot of people have suffered a lot of pain for Chesapeake to have a second chance and I ask that you not forget that going forward.
“Chesapeake is a really big and important company. It’s an important company to our country’s infrastructure, it helps make everything work,” Judge Jones said. “But we live right now in a very, very difficult time and you have the ability to be a leader and to make a difference.”
Mr. Lawler said he’s committed to fostering a positive corporate culture and treating all of Chesapeake’s stakeholders with transparency.
This turns the page on the Aubrey McClendon portion of Chesapeake's history. Lawler and his team that tried to turn Chesapeake around never had a chance given the hole that Aubrey dug for the company. I just don't expect the company to stop shorting their mineral lessors by way of marketing charges. All Haynesville lessors need to check their statements carefully to see if the newly negotiated lowering of gathering and treating expenses are passed on.