NEW YORK, June 28 (Reuters) – Chesapeake Energy CHK.N filed for bankruptcy on Sunday, becoming the largest US oil and gas group to apply for Chapter 11 bankruptcy protection in the United States , weighed down by a heavy debt and the impact of the coronavirus on the energy sector.
The Oklahoma-based company has started Texas court proceedings, the group said in a statement.
“Chesapeake intends to use the procedure to strengthen its balance sheet and restructure its contractual legal obligations to achieve a more sustainable capital structure,” the press release said that the group’s activities will continue during the procedure.
Chesepeake will attempt to write off approximately $ 7 billion in debt. The company has found a restructuring agreement that has creditors’ support for its main revolving credit facility and varying degrees of support from other types of creditors.
(David French in New York and Rama Venkat in Bengaluru, French version Gwénaëlle Barzic)