Chesapeake’s Stock performance last 6 months (click for larger version)
On Monday Chesapeake Energy missed making two scheduled interest payments owed to the company’s noteholders totaling $13.5 million according to a Securities and Exchange Commission filing made yesterday. The company also reported to the SEC that its “borrowing base” (value of assets against which they can borrow, or their “line of credit”) has taken a hit too. Previously the borrowing base was $3 billion. It’s now $2.3 billion. Poof–$700 million disappeared just like that. The stock market pegs the value of the company, the company’s market capitalization, at $127 million. Given it carries debts of $9 billion, well, you do the math.
