OKLAHOMA CITY, June 29, 2020 /PRNewswire/ -- Chesapeake Energy
Corporation (NYSE:CHK) today announced that the U.S. Bankruptcy
Court for the Southern District of Texas ("the Court") has approved the Company's
motions seeking a variety of "first-day" relief, including
authority to pay owner royalties, employee wages and benefits, and
certain vendors and suppliers in the ordinary course for goods and
services provided.
Chesapeake intends to use the proceedings to strengthen its
balance sheet and restructure its legacy contractual obligations to
achieve a more sustainable capital structure. Chesapeake will
operate in the ordinary course during the Chapter 11 process.
The Court has also approved, on an interim basis, the Company's
$925 million in debtor-in-possession
("DIP") financing, which Chesapeake has secured from certain
lenders under its revolving credit facility. The DIP financing will
provide Chesapeake the capital necessary to fund its operations
during the Court-supervised Chapter 11 reorganization
proceedings.
Additional information regarding Chesapeake's Chapter 11 filing
is available at http://www.chk.com/restructuring-information. Court
filings and information about the claims process are available at
https://dm.epiq11.com/chesapeake. Questions should be directed to
the Company's claims agent by email to
chesapeakeinfo@epiqglobal.com or by phone at 855-907-2082 (toll
free) or 503-520-4448 (toll).
Kirkland & Ellis LLP is serving as legal counsel, Alvarez
& Marsal is serving as restructuring advisor, Rothschild &
Co and Intrepid Financial Partners are serving as financial
advisors, and Reevemark is serving as communications advisor to the
Company.
Wachtell, Lipton, Rosen & Katz is serving as legal counsel
to the Company's Board of Directors.
Sidley Austin LLP is serving as legal counsel, RPA Advisors, LLC
is serving as financial advisor, and Houlihan Lokey Capital, Inc.
is serving as investment banker to MUFG Union Bank, N.A., the DIP
facility agent and exit facilities agent.
Davis Polk & Wardell LLP and
Vinson & Elkins L.L.P. are serving as co-legal counsel and
Perella Weinberg Partners and Tudor, Pickering, Holt & Co. are
serving as investment bankers to an ad hoc group of the Company's
first lien last out term loan lenders.
Akin Gump Strauss Hauer & Feld LLP is serving as legal
counsel, FTI Consulting, Inc. is serving as financial advisor, and
Moelis & Company LLC is serving as investment banker to
Franklin Advisers, Inc., as investment manager on behalf of certain
funds and accounts.
Headquartered in Oklahoma
City, Chesapeake Energy Corporation's (NYSE: CHK) operations
are focused on discovering and developing its large and
geographically diverse resource base of unconventional oil and
natural gas assets onshore in the United
States.
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Brad Sylvester,
CFA
(405)
935-8870
ir@chk.com
|
Gordon
Pennoyer
(405)
935-8878
media@chk.com
|
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SOURCE Chesapeake Energy Corporation