MESHOPPEN TOWNSHIP – One of the largest natural gas companies in Northeast Pennsylvania has filed for bankruptcy.
As NewsChannel 34’s Cody Butler shows us, Chesapeake Energy is looking to eliminate seven-billion dollars in debt by restructuring its investments with both assets and shareholders.
Chesapeake energy is the 11th largest natural gas producer in the country and one of the largest in Pennsylvania— one of its field offices is in Sayre.
The natural gas company now filling for chapter 11 protection in the US bankruptcy court.
In a statement to eyewitness news the company’s president Doug Lawler says quote “We are fundamentally resetting Chesapeake’s capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths…”
In past years Chesapeake has removed 20-billion dollars from leverage and financial commitments.
The company establishing itself in the state in 2011 has more than 31-hundred drilling permits according to the state department of environmental protection.
Nearly 1,000 of them remain active.
Chapter 11 bankruptcy will not stop Chesapeake from natural gas production, rather focus on eliminating 7 billion dollars in debt by working with the company’s creditors, it’s balance sheet and capital structures.
“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,” says Lawler.
With help in that, Debt holders will put 600-million dollars back into the company once it exits chapter 11 bankruptcy.
Chesapeake filed motions in court seeking a variety of “first day” relief — which means — if approved— the company can continue to pay creditors to operate during the bankruptcy process.
That includes landowners.
They can expect to continue to receive royalties, wages and benefits.