Posted on 06/28/2020 2:56:02 PM PDT by yesthatjallen
They borrowed to expand and overdid it. When prices dropped they couldn’t make payment on the debt.
where did that extra “h” come from, sorry about that should be “were”.
Please add... AGAIN...to title of thread. They filed for Chap 13 a couple years back, so they could recapitalize...wiped out existing share holders...
Now this...
This should be criminal...
Awful awful management of the so called company...just a piggy bank for corporate grifters.
Why the rapid expansion without looking at the variables (First one on the list is if energy prices subside)? You need to participate in risks but they (At least) need to be calculated and analyzed first.
They were leveraged for a few years. It’s a go for broke strategy. Sometimes it works. This time it didn’t.
As I usually post on these threads, when you see a major corporation crash and burn, always trace back to see who the investment bankers / private equity firms that got their claws in them were. Here it appears most recently to have been Carlyle Group.
I really doubt what you are saying. There is no way that they would qualify for a Chapter 13, and no competent lawyer would file one for them.
Perhaps you mean some low level oilfield worker employed by them filed a Chapter 13.
Gas is up today 1.99. Guess it will climb more.
....”Chesapeake was highly leveraged and in deep trouble before COVID-19”.....
True ....
Chesapeake Energy were definatly active in Pa. and NY State.
Hey smart guy... check the date on this article.
https://www.investors.com/news/chesapeake-doesnt-have-bankruptcy-plans-currently/
This was a couple weeks before they filed...for bankruptcy...
I don’t know when the economy will recover. If Trump is no elected it may not be be for a very long time. We have a long way to go.
That said, Chesapeake has teetered on the brink of bankruptcy for ages only to have prices go back up and be sort of back in the chips.
I thought surely McClendon would take it under but he managed to kill himself before he could finish the company off.
Our economy feels about as tippy as Chesapeake. Most of the stimulus money appears to have been spent, the unemployment stimulus is about done, people need to go back to work but are afraid to. The coronacation has gone on far too long.
Around here someone has got to eventually ask why we contunue to pay teachers if kids are not in school? Those are about the only steady jobs around here or at least a necessary supplemental income across the country.
That is about all Chesapeake has ever been. A fish rots from the head. McClendon staffed the executive suite with high rollers just like himself. It is the company culture. And yes, it is a piggy bank for corporate grifters.
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