Chesapeake Energy Corporation Commences Voluntary Chapter 11 Process
Vinson & Elkins is serving as co-counsel to an ad hoc group of first lien last out term loan lenders in connection with Chesapeake Energy Corporation’s voluntarily Chapter 11 filing for protection in the U.S. Bankruptcy Court for the Southern District of Texas. Chesapeake plans to use the proceedings to strengthen its balance sheet and restructure its legacy contractual obligations to achieve a more sustainable capital structure. Chesapeake will operate in the ordinary course during the Chapter 11 process.
Chesapeake entered into a Restructuring Support Agreement (“RSA”) with 100% of the lenders under its revolving credit facility, holders of approximately 87% of the obligations under its Term Loan Agreement, approximately 60% of its senior secured second lien notes due 2025, and approximately 27% of its senior unsecured notes, pursuant to which Chesapeake will implement a Chapter 11 plan of reorganization to eliminate approximately $7 billion of debt.
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