Posted on 06/28/2020 2:56:02 PM PDT by yesthatjallen
Chesapeake Energy Corporation said Sunday it had filed for bankruptcy amid a drop in oil and gas demand and prices due to the coronavirus pandemic.
Chesapeake Energy said in a release it filed for Chapter 11 bankruptcy and will continue to operate throughout its restructuring process.
The Oklahoma City-based company said it secured a $925 million debtor-in-possession financing from certain lenders under Chesapeake’s revolving credit facility, which will be available upon court approval.
The company and certain lenders under its revolving credit facility also agreed to the principal terms of a $2.5 billion exit financing, consisting of a new $1.75 billion revolving credit facility and a new $750 million term loan, according to the release.
The company said it also has the support of its term loan lenders and secured note holders to backstop a $600 million rights offering upon exit.
SNIP
(Excerpt) Read more at thehill.com ...
More importantly who will the media blame for the downturn and covid before the November election?
I can't see how anyone can blame covid and the resulting downturn on Trump but that doesn't stop the media from pounding that narrative into the head of ignorant and gullible people.
To be fair, Chesapeake was highly leveraged and in deep trouble before COVID-19.
With the surges in the red states, are populations being “seeded” with the Virus?
That’s their goal - use Covid-19 to stop the economy, blame Trump, insist on mail-in-votes to steal the election.
I am wondering if so-called “Elites” will be buying up energy companies or other assets they are starving of business to then benefit after the election when Covid-19 lockdown is released.
CHK had large legacy debt it carried. Most in come from natural gas in marcellus.
Then in early 2019 did a merger with Wildhorse in the Eagle Ford to expand d into crude oil. Tried to manage the 9 billion plus in debt. Then oil crashed.
Chesapeake Energy Corporation headquartered in OKC?
That’s funny.
I was going to say the same thing. This is not a surprise.
Wasn’t Chesapeake the one that bought up a gazillion acres of shale leases back in the 2000’s?
There goes my future billions! /s
This was Aubrey McClendon’s baby. I think he suicided himself a while back.
Notice how no one is saying a word about the Saudis and the Russians flooding the market with oil? Guess WuFlu blew them off the news.
Yup...worked for a long while. Company was a high flier. Unfortunately their CEO was a higher flier.
Wiki says he drove into a concrete embankment at 88mph.
[CHK had large legacy debt it carried. Most in come from natural gas in marcellus.
Then in early 2019 did a merger with Wildhorse in the Eagle Ford to expand d into crude oil. Tried to manage the 9 billion plus in debt. Then oil crashed.]
[Notice how no one is saying a word about the Saudis and the Russians flooding the market with oil?]
The market isn’t efficient. If lenders knew what they were doing, they wouldn’t have given Chesapeake and its ilk a gigantic pot of money at historically low interest rates (given the kind of risk and leverage the industry took on). But they did so anyway.
Flashy management
Flashy management
Like Equifax hiring for diversity.
Intentionally
Where where they leverage at (Please do not say green energy, lol)? Just asking because running an energy company into the ground with a high velocity of demand seems difficult to do.
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