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Fieldwood Energy’s Bankruptcy, Oil Well Cleanup Plan Approved

June 25, 2021, 3:59 PM

Bankrupt Fieldwood Energy LLC won approval of its highly scrutinized reorganization plan to restructure $1.8 billion of debt and address an estimated $7 billion of environmental cleanup obligations.

Judge Marvin Isgur approved the Chapter 11 plan Friday, capping five days of virtual testimony and argument in the U.S. Bankruptcy Court for the Southern District of Texas.

The Houston-based company’s case spotlighted thorny legal issues over plugging oil wells that are no longer in use.

The multi-faceted reorganization is “in the best interest of the United States and the creditors of the estate,” Isgur said.

The plan is the product of ...