Chesapeake Energy, a pioneer in the U.S. shale revolution, files for bankruptcy protection – CNBC


The move comes as the company and market more broadly has actually been rocked by a drop in oil and gas costs amidst the coronavirus pandemic.The heavily indebted company has been in difficulty for some time, and in May said that it had issues concerning its long-lasting viability.Chesapeake stated that $7 billion in debt will be wiped out through the restructuring. In addition, Chesapeake has secured a contract in concept from particular existing loan providers for $2.5 billion in debt financing on development from personal bankruptcy, as well as a backstop dedication for $600 million in brand-new equity.Franklin Resources and Fidelity are amongst the biggest financial institutions, according to people close to the company, and they will be amongst the main equity holders following the companys restructuring. The business will continue operations at a much reduced capacity, with a handful of gas rigs and no oil rigs, according to those familiar with the companys plans.