Williams Given Approval to Resolve Chesapeake Midstream Contracts
Natural gas pipeline giant Williams has received a past-due payment of $112 million from Chesapeake Energy Corp. after a court approved a resolution between the two companies last month as part of the producer’s bankruptcy proceedings.
The Tulsa-based pipeliner reached a global resolution in November to continue treating and moving Chesapeake’s natural gas in the Lower 48. Chesapeake filed for Chapter 11 bankruptcy protection in June to wipe out $7 billion of debt and has also sold all of its Midcontinent assets in the process. Williams said it received the $112 million payment for pre-petition and past-due receivables for midstream expenses per its existing contracts with Chesapeake.
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Williams (NYSE: WMB) today announced bankruptcy court approval of the global resolution it reached last month with Chesapeake as part of Chesapeake’s Chapter 11 bankruptcy restructuring process. Subsequent to the bankruptcy court’s approval, Williams received a payment of $112 million from Chesapeake related to all pre-petition and past due receivables associated with midstream expenses per the existing contracts.
Key highlights of the approved global resolution include the following:
Chesapeake will pay all pre-petition and past due receivables related to midstream expenses, per the existing contracts.
Chesapeake will not attempt to reject Williams’ gathering agreements in the Eagle Ford, Marcellus, or Mid-Con.
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