Chesapeake Energy emerges from bankruptcy
The firm owed creditors $8.9 billion when it filed its case
Stocks impacted: Chesapeake Energy (CHK)
The Oklahoma City-based oil-and-gas producer’s Chapter 11 bankruptcy plan was approved by a U.S. judge, giving lenders control of the firm and ending a contentious trial. The ruling will enable the company to formally emerge from a process it started in late June within about 30 days. The approved plan sheds $7 billion of the debt. As a reminder, Chesapeake owed creditors $8.9 billion when it filed its case. The operator will also exit bankruptcy with $600 million raised through a backstopped equity rights offer and with $2.5 billion in exit financing to fund its ongoing operations. So far, there are no details about what a new Chesapeake will look like from an operating standpoint when it steps back into normal operations. Chesapeake stocks finished 4.41% lower on Wednesday.
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