As Chesapeake Energy announced a $1 billion note offering this week in preparation for its exit from Chapter 11 bankruptcy, the Oklahoma City company confirmed the layoffs of more than 200 employees.
CEO Doug Lawler notified company workers in an email that the restructuring process that came about from its Chapter 11 bankruptcy filed last year would help the firm “emerge a stronger and more competitive enterprise.”
But in order to reach that goal, the firm would have to reduce its workforce by nearly 15% and most of the layoffs would be at the company’s college-like campus in north Oklahoma City.
“Approximately 220 employees are affected by this action, and I would like to personally thank them for their service to our company,” added Lawler in the email notice.
The official notification of those who will lose their jobs will take place by midday Thursday.
“As we prepare to conclude our restructuring, we continue to prudently manage our business and staffing levels to adapt to challenging market conditions and position Chesapeake for sustainable success,” a statement from Communications and Investor Relations Director Gordon Pennoyer read.
Oklahoma City’s Chesapeake Energy Corporation confirmed late Tuesday that its $1 billion note offering announced earlier in the day will be used to get out of Chapter 11 bankruptcy which should happen next week.
“The Notes were offered as part of a series of exit financing transactions being undertaken in connection with a restructuring of Chesapeake,” read the statement in part.
The $500 million in Senior notes due 2026 and $500 million in Senior notes due 2029 were part of Chesapeake’s reorganization plan approved by a U.S. Bankruptcy judge in the Court for the Southern District of Texas. The plant was filed Jan. 12, 2021 and approved Jan. 16.
Chesapeake’s announced said proceeds from the offering will be used to fund the distributions provided for under the reorganization plan. It will include the repayment of Chesapeake’s debtor-in-possession facility and fees, commissions and expenses related to the company’s emergence from bankruptcy.
Source: press release
