Big Chesapeake Investor Hires Lawyers Ahead of “Restructuring”

In mid-March, MDN brought you the news that Chesapeake Energy had hired “restructuring advisers” to help the company navigate a $9 billion debt millstone hanging around its neck (see Chesapeake Energy Hires “Restructuring Advisers”). One of Chesapeake's biggest investors is mutual-fund company Franklin Resources Inc., which owns over 12% of Chessy's stock AND owns a lot of Chessy's debt (notes). So Franklin sits on both sides of the aisle with Chesapeake--debt and equity. Franklin is not leaving Chesapeake's "restructuring" to chance--whether it be bankruptcy or something else. According to a Wall Street Journal article, Franklin has hired lawyers to negotiate with Chesapeake ahead of any official restructuring announcement.

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