OKLAHOMA CITY, OKLAHOMA (WBRE/WYOU-TV) One of the largest natural gas companies in our area files for bankruptcy. Chesapeake Energy says it wants to eliminate $7 billion of debt.
While filing Chapter 11 bankruptcy, the natural gas company plans to restructure its investments. Chesapeake Energy is the 11th largest natural gas producer in the country and one of the largest in Pennsylvania— one of its field offices is in Sayre.
The natural gas company is now filling for Chapter 11 protection in the US bankruptcy court.
In a statement to Eyewitness News, the company’s president Doug Lawler says, “We are fundamentally resetting Chesapeake’s capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths.”
In past years, Chesapeake has removed $20 billion from leverage and financial commitments.
The company establishing itself in the state in 2011 has more than 3,100 drilling permits according to the state department of environmental protection. Nearly 1,000 of them remain active.
Chapter 11 bankruptcy will not stop Chesapeake from natural gas production, rather focus on eliminating $7 billion in debt by working with the company’s creditors, its balance sheet and capital structures.
Lawler says, “With these demonstrated strengths, and the benefit of an appropriately sized capital structure, Chesapeake will be uniquely positioned to emerge from the Chapter 11 process as a stronger and more competitive enterprise.”
Debt holders will put $600 million back into the company once it exits Chapter 11 bankruptcy.
Chesapeake filed motions in court seeking a variety of “first day” relief which means, if approved, the company can continue to pay creditors and remain in operation during the bankruptcy process. Landowners can expect to continue to receive royalties, wages and benefits.