Chesapeake, Energy Transfer End Bankruptcy Fight Over Contracts

Chesapeake Energy Corp. settled their fight over more than $500 million in natural gas contracts with Energy Transfer.

• At a hearing Monday, a bankruptcy judge approved the deal, under which affiliates of Energy Transfer will drop its opposition to Chesapeake’s attempt to cancel and replace various pipeline contracts
  • In return, the affiliates would receive bankruptcy claims to be paid at the same recovery percentage as unsecured creditors
  • Those claims would compensate Energy Transfer for any early-termination provisions in the canceled contracts
• Chesapeake exited bankruptcy last month under a plan that cut about $7 billion in debt in exchange for ...