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.