Bankruptcy Judge David Jones on Tuesday approved the reorganization plan of California Resources Corp. (CRC), one of the state's major oil and gas producers, paving the way for it to exit chapter 11 just three months after filing for bankruptcy protection, the Palm Springs (Calif.) Desert Sun reported. CRC is one of three fossil fuel companies — alongside Chevron and Aera, which is jointly owned by Shell and ExxonMobil — that produce the lion's share of oil and gas in the Golden State. The drilling company bills itself as a major job creator that plays an important role in domestic energy independence, while conservationists argue the firm is likely to eventually saddle taxpayers with a huge cleanup bill for orphaned wells. When CRC filed for bankruptcy protection on July 15, it was having trouble making payments to its funders and proposed a plan to shed more than $5 billion in debt. Tuesday's chapter 11 plan ultimately came with overwhelming support from creditors, according to the lawyers present at the hearing, and could allow the company to eliminate that debt, in part by employing a debt-for-equity swap.
