Chesapeake Energy files for bankruptcy
Chesapeake Energy Corporation said Sunday it had filed for bankruptcy amid a drop in oil and gas demand and prices due to the coronavirus pandemic.
Chesapeake Energy said in a release it filed for Chapter 11 bankruptcy and will continue to operate throughout its restructuring process.
The Oklahoma City-based company said it secured a $925 million debtor-in-possession financing from certain lenders under Chesapeake’s revolving credit facility, which will be available upon court approval.
The company and certain lenders under its revolving credit facility also agreed to the principal terms of a $2.5 billion exit financing, consisting of a new $1.75 billion revolving credit facility and a new $750 million term loan, according to the release.
The company said it also has the support of its term loan lenders and secured note holders to backstop a $600 million rights offering upon exit.
https://thehill.com/policy/energy-environment/504944-chesapeake-energy-files-for-bankruptcy
