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CHESAPEAKE ENERGY: Royalty Owners’ Panel Seeks to Tap Legal Counsel

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The official committee of royalty owners appointed in the Chapter 11 cases of Chesapeake Energy Corp. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Forshey & Prostok, LLP as its legal counsel.

The firm will provide the following services:

a. advise the royalty owners’ committee with respect to its rights, duties, and powers in Debtors’ bankruptcy cases;

b. assist the royalty owners’ committee in its consultations with Debtors regarding the administration of the cases;

c. analyze claims of creditors and Debtors’ capital structure and negotiate with holders of claims;

d. investigate the acts, conduct, assets, liabilities and financial condition of Debtors and their insiders and affiliates, and the operation of Debtors’ businesses;

e. assist the royalty owners’ committee in its investigation of the liens and claims of Debtors’ lenders and the prosecution of any claims or causes of action revealed by such investigation;

f. assist the royalty owners’ committee in its analysis of, and negotiations with Debtors or any other party concerning matters related to the assumption or rejection of nonresidential real property leases and executory contracts, asset dispositions, financing and the terms of Debtors’ plan of reorganization;

g. represent the royalty owners’ committee at hearings and other proceedings;

h. review and analyze applications, orders, statements of operations and schedules filed with the court;

i. prepare pleadings; and

j. perform other necessary legal services related to Debtors’ bankruptcy cases.

The firm’s hourly rates are as follows:

Professional Fee Range
———— ———
Jeff P. Prostok $675
J. Robert Forshey $675
Suzanne “Suki” Rosen $525
Deirdre Carey Brown $425
Other Attorneys $275 – $525
Paraprofessionals $125 – $175

Jeff Prostok, Esq., a partner at Forshey & Prostok, disclosed in a court filing that his firm is a “disinterested person” within the meaning of Section 101(14) of the Bankruptcy Code.

The firm can be reached through:

Jeff P. Prostok, Esq.
Forshey & Prostok, LLP
777 Main Street, Suite 1550
Forth Worth, TX 76102
Telephone: (817) 877-4223
Email: jprostok@forsheyprostok.com

About Chesapeake Energy

Headquartered in Oklahoma City, Chesapeake Energy Corporation’s (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States.

Chesapeake Energy reported a net loss of $308 million for the year ended Dec. 31, 2019. As of Dec. 31, 2019, the company had $16.19 billion in total assets, $2.39 billion in total current liabilities, $9.40 billion in total long-term liabilities, and $4.40 billion in total equity.

Chesapeake Energy and its affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-33233) on June 28, 2020, after reaching terms of a Chapter 11 plan of reorganization to eliminate approximately $7 billion of debt.

Debtors have tapped Kirkland & Ellis LLP as legal counsel, Jackson Walker LLP as co-counsel and conflicts counsel, Alvarez & Marsal as restructuring advisor, Rothschild & Co and Intrepid Financial Partners as financial advisors, and Reevemark as communications advisor. Epiq Global is the claims agent, maintaining the page http://www.chk.com/restructuring-information.

Wachtell, Lipton, Rosen & Katz serves as legal counsel to Chesapeake Energy’s Board of Directors.

MUFG Union Bank, N.A., the DIP facility agent and exit facilities agent, has tapped Sidley Austin LLP as legal counsel, RPA Advisors LLC as financial advisor, and Houlihan Lokey Capital Inc. as investment banker.

Davis Polk & Wardell LLP and Vinson & Elkins L.L.P. serve as legal counsel to an ad hoc group of first lien last out term loan lenders while Perella Weinberg Partners and Tudor, Pickering, Holt & Co. serve as the group’s investment bankers.

Franklin Advisers, Inc. has tapped Akin Gump Strauss Hauer & Feld LLP as legal counsel, FTI Consulting, Inc. as financial advisor, and Moelis & Company LLC as investment banker.

On July 9, 2020, the Office of the U.S. Trustee appointed a committee to represent unsecured creditors in Debtors’ Chapter 11 cases. The unsecured creditors’ committee has tapped Brown Rudnick, LLP and Norton Rose Fulbright US, LLP as its legal counsel, and AlixPartners, LLP as its financial advisor.

On July 24, 2020, the bankruptcy watchdog appointed a committee of royalty owners. The royalty owners’ committee is represented by Forshey & Prostok, LLP.

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