Chesapeake Energy Filed for Bankruptcy Restructuring Protection Sunday
June 28, 2020
The shale drilling pioneer Chesapeake Energy lost $8.3 billion in 1Q and reported only $82 million in cash at the end of March. In a debtor agreement, Chesapeake has acquired $925 million in a revolving credit debtor-in-possession agreement to keep it going during the bankruptcy process, eliminating about $7 billion of debt along with a $600 million commitment for new equity when it emerges from the court process.
However, with about 73% of unsecured bondholders refusing to go along with the deal, a fight over recoveries is expected and could get contentious as hedge funds that accumulated positions in the bonds fight with the secured debtors
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