'Over the last several years, our dedicated employees have transformed Chesapeake's business - improving capital efficiency and operational performance, eliminating costs, reducing debt and diversifying our portfolio,' Lawler said in a statement.

When current CEO Doug Lawler succeeded him, the company had nearly as much debt as Exxon and Chevron combined. McClendon was ultimately ousted from the company in 2013, and in 2016 was indicted on federal charges of conspiring to rig bids for oil and natural gas leasesВ for a new venture he had started.В The following day, McClendon perished in a car crash. 'We are fundamentally resetting Chesapeake's capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths,' CEOВ Doug Lawler said in a statement.

The company will continue operations at a much reduced capacity, with a handful of gas rigs and no oil rigs, according to those familiar with the company's plans. In addition, Chesapeake has secured an agreement in principle from certain existing lenders for $2.5 billion in debt financing on emergence from bankruptcy, as well as a backstop commitment for $600 million in new equity.ДЇranklin Resources and Fidelity are among the biggest creditors, according to people close to the company, and they will be among the primary equity holders following the company's restructuring. The company has secured $925 million in debtor-in-possession financing in order to continue operations during the bankruptcy process.

Chesapeake said that $7 billion in debt will be wiped out through the restructuring.

Market watch chesapeake energy