Chesapeake becomes latest shale firm to file bankruptcy.

摘要

One of the original movers -within the US shale space, Chesapeake Energy Corp., filed for Chapter 11 bankruptcy protection on June 28 in the US Bankruptcy Court for the Southern District of Texas, becoming the latest and largest US shale firm to file for Chapter 11 protection amid an oil price and demand rout caused by the COVID-19 pandemic. A high level of debt that the company was unable to refinance due to the impacts of the pandemic on the oil market was cited as the reason for the bankruptcy filing. A statement from CEO Doug Lawler read, "Despite having removed over $20.OB of leverage and financial commitments, we believe this restructuring is necessary for the long-term success and value creation of the business. We are fundamentally resetting Chesapeake's capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths. By eliminating approximately $7.OB of debt and addressing the legacy contractual obligations that have hindered our performance, we are positioning Chesapeake to capitalize on our diverse operating platform and proven track record of improving capital and operating efficiencies and technical excellence. 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."