Shale Gas Giant Eyes Bankruptcy
A bankruptcy filing would cap a long reversal of fortunes for Chesapeake, a company that helped revolutionize the energy industry through the relentless extraction of untapped oil and natural gas from shale rock formations, an environmentally controversial method that became known as fracking.
Naive to think that Oil/gas will just go away any time soon, but clearly the corona crisis is hammering the industry, and I believe history will record this as some kind of definitive point of no return for the sector.
Chesapeake Energy Corp (CHK.N) said on Monday it is no longer able to access financing and is considering a bankruptcy court restructuring of its over $9 billion debt if oil prices don’t recover from their sharp fall caused by the COVID-19 pandemic.
Reuters reported last month that the pioneering shale gas producer was in talks to line up bankruptcy financing and was discussing a possible loan to help maintain operations through the court proceedings.
Debt maturities and interest expenses combined total more than $1 billion, according to company filings. About $250 million of its senior notes are due this year.
The Oklahoma City-based company re-issued bit.ly/2Li4YGr a…
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