The Americas Core Credit team discusses the Chesapeake Energy chapter 11 filing and contemplated plan of reorganization as outlined in the restructuring support agreement including resulting equity splits of the reorganized company whereby rights offering participants would own 63.4% of the new common stock. Although the first day hearing was uncontested, debtors’ counsel noted that the RSA is supported by only 27% of unsecured noteholders. The team also reviews contemplated plan recoveries for stakeholders in comparison with illustrative absolute priority recoveries and potential claims and causes of action that could be asserted by the unsecured creditors committee.
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