Chesapeake Energy

On Sunday Chesapeake Energy filed for bankruptcy (see Chesapeake Files for Bankruptcy – Debtors to Take Ownership). Yesterday the New York Stock Exchange, on which Chesapeake shares (CHK) trade, halted trading and immediately began proceedings to delist the stock.
Read More “Chesapeake’s Existing Stockholders Wiped Out – Shares Delisted”

We’ve told you for months to expect it. Yesterday (on Sunday) Chesapeake Energy finally filed for Chapter 11 bankruptcy after lining up a $925 million loan to keep the doors open, the lights on, and the drill bits chewing away. Pipeline companies (and other vendors) that have contracts with the company should be concerned. The opening paragraph of Chessy’s press release says, “Chesapeake intends to use the proceedings to strengthen its balance sheet and restructure its legacy contractual obligations to achieve a more sustainable capital structure.” That means they’re looking to break existing contracts, using the bankruptcy filing as an excuse.
Read More “Chesapeake Files for Bankruptcy – Debtors to Take Ownership”

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.
Read More “Chesapeake Misses Interest Payment, Line of Credit Drops $700M”

We’ve been on bankruptcy watch for Chesapeake Energy for some time now. We told you yesterday that the company faced a $17 million debt payment deadline yesterday, and faces a $134 million bond interest payment on July 1 (see Doug Lawler Drilled Chesapeake’s Grave – Not Aubrey McClendon). If the company is going to declare bankruptcy, it will likely be very soon. Reuters, which is the best of the major mainstream news services (most reliable in many ways) is reporting sources are telling them the company is getting ready to file for bankruptcy “as soon as this week.”
Read More “Reuters: Chesapeake Energy May File for Bankruptcy This Week”

Chesapeake Energy faces a series of deadlines to make payments to debtors. Today, June 15, is the first such deadline when something like $17 million in interest payments is owed. The company has a $134 million bond interest payment due on July 1 for its second-lien notes. Between today and the end of the month, rumor has it the company will declare bankruptcy (see Chesapeake Stock Soars, Bankruptcy Rumors Soar Too). It is possible for Chessy to delay a bankruptcy filing for an extra 30 days, until the end of July, if they exercise a “grace period.”
Read More “Doug Lawler Drilled Chesapeake’s Grave – Not Aubrey McClendon”

Yesterday MDN brought you the news that Chesapeake Energy’s stock price had risen some 500% over the previous two days (see Chesapeake Stock Soars, Bankruptcy Rumors Soar Too). We also told you that a single news story, by the leftists at Bloomberg, published early yesterday in an attempt to splash a bucket of cold water on Chessy’s good fortune, claimed “sources” say the company will soon declare bankruptcy with a plan to shaft existing stockholders and instead give most of the equity in the company to debtholders. That one Bloomberg story caused Chesapeake’s stock to lose two-thirds (66%) of its value yesterday in a wild ride down.
Read More “Chesapeake’s Wild Stock Ride Continued Yesterday – Down 66%”

Chesapeake Energy’s stock went on a wild roller coaster ride yesterday. Over the past two days, the company’s stock rose by nearly 500% in value. Trading of the stock was halted 22 times yesterday for volatility. Chessy stock hit an all-time low of $8.41/share on May 14, the equivalent of a pre-reverse split price of just 4 cents per share–essentially worthless. The company’s shares rose over the past few days on the news that OPEC is extending its production cuts, boosting the price of oil. Right on cue, Bloomberg arrived early this morning with a story to throw cold water on Chessy’s rekindled stock–a story that the company has a plan to declare bankruptcy and turn current debtholders into the new owners, making all of those red hot shares of stock worthless. Bloomberg’s bankruptcy news sent the stock price down in pre-hours trading this morning.
Read More “Chesapeake Stock Soars, Bankruptcy Rumors Soar Too”