Judge approves Chesapeake’s bankruptcy plan

Although there is much to be done before Chesapeake formally emerges from bankruptcy, the company has reached “a critical milestone” in its future, according to an email sent to employees by CEO Doug Lawler on Thursday morning.

Judge David R. Jones approved Chesapeake’s bankruptcy plan, tying a bow around a package of actions that will shed $7 billion of the $8.9 billion Chesapeake owed to creditors when it filed its case.

The company will also exit bankruptcy with $600 million raised through a backstopped equity rights offer and with $2.5 billion in exit financing to fund its ongoing operations.

Learn more: The Oklahoman > A bankruptcy milestone: Chesapeake plan approved, no changes to executive leadership

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