Chesapeake Energy will emerge from Chapter 11 bankruptcy next week having dumped $7 billion of old debt (out of $8.9 billion) and taking on $2.5 billion in new debt financing (see Court Approves Chesapeake Bankruptcy Plan to Dump $7B of Debt). Yesterday the company issued an announcement to say it is raising $1 billion of new debt by floating two new rounds of notes (which we call IOUs). The company will also refocus away from oil drilling and back on its original mission of natural gas drilling.
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