A employee on a Chesapeake Vitality pure gasoline rig in Fort Value, Texas
Matt Nager | Bloomberg | Getty Pictures
Chesapeake Vitality, the poster youngster of the U.S. shale revolution, filed for chapter safety on Sunday. The transfer comes as the corporate and business extra broadly has been rocked by a drop in oil and gasoline costs amid the coronavirus pandemic.
The closely indebted firm has been in hassle for a while, and in Could mentioned that it had issues concerning its long-term viability.
Chesapeake mentioned that $7 billion in debt shall be worn out via the restructuring. The corporate has secured $925 million in debtor-in-possession financing with the intention to proceed operations, in addition to an extra $600 million dedication for brand spanking new fairness as soon as the corporate emerges from chapter.
Franklin Sources and Constancy are among the many largest collectors, based on individuals near the corporate, and they are going to be among the many main fairness holders following the corporate’s restructuring. The corporate will…