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Chesapeake Energy Files For Bankruptcy Protection

Chesapeake Energy Corp. (CHK) said that it has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The company noted that it plans 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 company said it has executed a restructuring support agreement with a majority of the company's creditors to eliminate Approximately $7 billion of debt.

The company said it has obtained commitments for $925 million in debtor-in-possession financing to support operations; seeks court authorization for post-petition payments for owner royalties, wages and benefits, vendors and suppliers.

The company has secured $600 million commitment of new equity in the company as part of comprehensive exit financing.

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