Chisholm’s Bankruptcy Plan Approved, Shedding 93% Funded Debt

Chisholm Oil and Gas Operating LLC won bankruptcy court approval of its reorganization plan, wiping about $482 million of funded debt from its ledger.

The company will emerge from bankruptcy with about $34.77 million in funded debt remaining.

Under the plan approved Wednesday by Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware, creditors holding $263 million of claims backed by reserves will get 95% of the new equity in the reorganized company.

Term lenders will get 4% of the equity, worth less than 1% of their $253 million in claims, and unsecured creditors will ...