Economy Stock

Cheasapeake Energy bankruptcy plan approved by U.S. judge

HOUSTON (Reuters) – U.S. oil and gas producer Chesapeake Energy (NYSE:CHK)’s Chapter 11 bankruptcy plan was approved by a U.S. judge on Wednesday, giving lenders control of the company and ending a contentious trial.

Unsecured creditors unsuccessfully opposed approval, arguing the company had already designed a 2019 debt restructuring and delayed its filing to improperly benefit mutual fund provider Franklin Advisers Inc and other big debt holders.

The plan would value Oklahoma-based Chesapeake at about $5.13 billion. Shareholders saw their investment wiped out with the bankruptcy filling.

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