Chesapeake Energy files for bankruptcy
The firm will continue to operate during its restructuring process
Stocks impacted: Chesapeake Energy Corporation (CHK)
Chesapeake Energy filed for bankruptcy protection on Sunday, being rocked by a drop in oil and gas prices amid the coronavirus pandemic. The firm said it planned to continue to operate during its restructuring process. As part of its agreement with lenders, the company said it had secured $925 million in financing under a revolving credit facility, and eliminated roughly $7 billion of debt. Chesapeake lost $8.3 billion in the first quarter of this year, and had just $82 million in cash at the end of March. It also has bond payments of $192 million due in August. Despite the reported bankruptcy filing was not unexpected for investors, the company’s stocks could extend losses at the open after a dip by over 7% on Friday.
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