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We apologize for any inconvenience this may cause. Chesapeake Energy Corp. About eight months after Chesapeake warned it was in danger of violating its credit agreements, the shale gas producer filed for Chapter 11 bankruptcy protection June 28 after exhausting a long list of debt and equity vehicles for deleveraging and improving profitability. According to the first-day declaration Dell'Osso filed as part of the Chapter 11 case, Chesapeake began "comprehensive restructuring negotiations" with major creditors in late March, and by May, it was weighing two proposals as the COVID pandemic destroyed demand for hydrocarbons.
Even though the company had abandoned the "grow at any cost" culture when Doug Lawler replaced founder Aubrey McClendon as CEO in , Chesapeake "requires a comprehensive deleveraging transaction to position the business for profitability in the current commodity price environment," Dell'Osso said. The driller has already requested authorization to do so from the U. In response to a petition from ETC Tiger, the Federal Energy Regulatory Commission issued a declaratory order June 22 stating that while Chesapeake can move to reject a contract in bankruptcy court without commission approval, this rejection of contracts in bankruptcy does not alter regulatory obligations under FERC jurisdiction, per the Natural Gas Act.
Chesapeake moved to counter the pipelines' positions. It told the court June 28 that the 5th U. Circuit Court of Appeals "has held that the bankruptcy code does not limit the bankruptcy court's authority to reject contracts that are subject to FERC regulation. In the legal profession, information is the key to success.
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May 13, LunarEye, Inc. View recent docket activity Reflects complaints, answers, motions, orders and trial notes entered from Jan. Parties Stay ahead of the curve In the legal profession, information is the key to success.