Debt from a Defunct Business Can Help to Qualify for Subchapter V
Part-time self-employment, coupled with debt from a defunct business, qualified the debtor for reorganization under Subchapter V of chapter 11.
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Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees
The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.
Chapter 13 Debtor May (Sometimes) Contribute to Retirement Plans
A chapter 13 debtor was permitted to make a fraction of the pension contributions permitted by the IRS Code.
Another Oklahoma Energy Company Emerges from Bankruptcy with Lightened Debt Load
Oklahoma City-based Gulfport Energy Corp. has emerged from bankruptcy, the Oklahoman reported. The company announced yesterday that it successfully completed a restructuring process to emerge from chapter 11 protection with a new interim CEO, a new board and significantly less debt. It is among numerous Oklahoma-based energy companies to emerge from bankruptcy in recent years, including Chesapeake Energy, which emerged from its process in February. In all, Gulfport offloaded more than $1.2 billion it owed creditors. While the reconstituted company still has $853 million in debt, officials said yesterday that it has about $135 million of liquidity and a net-debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio of 1.5x. Gulfport also announced the departure of pre-bankruptcy CEO David M. Wood and CFO Quentin Hicks. Timothy J. Cutt, chairman of Gulfport's new board of directors, will lead the company as its interim CEO while William “Bill” J. Buese has been named as its CFO, moving forward.
West Virginia Judge Allows Conversion to Subchapter V After Deadlines Passed
When drafting a statute, Congress cannot ‘think of every single esoteric possibility,’ Judge Mignault says.
Chesapeake Energy Posts Profit after Bankruptcy Exit, Declares Dividend
Chesapeake Energy Corp. yesterday reported a quarterly profit of $295 million in its first earnings after emerging from bankruptcy in February, Reuters reported. Once the second-largest U.S. natural gas producer, the company filed for court protection last June, saddled with more than $9 billion debt from overspending on assets and a sudden decline in oil prices and demand from the pandemic. Chesapeake yesterday also declared an annual dividend on its common shares of $1.375 per share. The first quarterly dividend will be paid on June 10. Shares of the company were up about 5% at $51.50 in extended trade. The company expects 2021 production to be between 410,000 barrels of oil equivalent per day (boepd) and 420,00 boepd, with total capital expenditure ranging between $670 million and $740 million. Chesapeake said that it achieved an average net production rate of about 436,000 boepd during the first quarter. Total production levels in 2022 is expected to remain flat to 2021, the company added, with natural gas increasing to about 85% of the total production mix for 2022. Chesapeake is currently operating seven rigs across its portfolio, with three rigs in Appalachia, three rigs in Haynesville and one rig in South Texas.
