Chesapeake Energy Craters 40% on Restructuring Report – Bloomberg Business

Chesapeake Energy Corp., the U.S. natural gas driller that’s been slashing jobs and investor payouts to conserve dwindling cash flows, lost more than a third of its value after a report that it hired a restructuring law firm. The shares dropped 40 percent to $1.83 at 9:45 a.m. in New York, the lowest intraday level since January 2000. Before today, the Oklahoma City-based company had already lost 85 percent of its market value during the previous year. Chesapeake’s bonds also plunged. The fall was triggered by a Debtwire report that Chesapeake retained Kirkland & Ellis to help restructure a $9.8 billion debt load. Chesapeake will post a second consecutive annual loss this year as an oversupply of North American gas weighs on prices and erodes cash flows the company needs to pay its debts, according to forecasts compiled by Bloomberg. Chesapeake is scheduled to disclose fourth-quarter and full-year 2015 results on Feb. 24.

Source: Chesapeake Energy Craters 40% on Restructuring Report – Bloomberg Business

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s