Chesapeake Energy, $9 Billion In Debt W. No Rescue Available, Arrives At End Of Fracking "Miracle"
Chesapeake Energy Corp said on Monday it was unable to access financing and was considering a bankruptcy court restructuring of its over $9 billion debt if oil prices don’t recover from the sharp fall caused by the COVID-19 pandemic. The announcement follows last month’s statement by the pioneering shale gas producer that it was in talks to line up bankruptcy financing and was in talks for a loan to run its operations through the court proceedings.
Company filings showed it had a combined debt of more than $1 billion by way of debt maturities and interest expenses, of which $250 million in senior notes were due this year.
This is the second going concern warning bit.ly/2Li4YGr by the Oklahoma City-based company since November. It said this quarter's review of the value of its untapped oil and gas reserves is likely to show a decline due to its distressed finances, reducing its ability to borrow against those assets.
Chesapeake last week said it would prepay $25 million in incentives to top executives. Peers Whiting Petroleum Corp and Diamond Offshore Drilling Inc also gave cash awards to senior management just days before filing for Chapter 11 protection last month. Ed - Priorities, y'all - priorities.
EDIT
https://www.reuters.com/article/us-chesapeake-enrgy-bankruptcy/shale-pioneer-chesapeake-considers-bankruptcy-filing-after-oil-rout-idUSKBN22N1RJ?il=0
