Shalestorm

Chesapeake Energy files for bankruptcy

Chesapeake Energy Corp., a paradigm for the world of shale-gas fracking in the United States, filed for bankruptcy June 28, a major company falling to the continual drop in energy demand happening during the pandemic.

The Oklahoma City-based company filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court in the Southern District of Texas on Sunday, listing assets and liabilities in the range of $10 billion and $50 billion, and more than 100,000 creditors, according to Bloomberg.

One thing that will not make investors or hardworking Americans happy is that the bankruptcy filing uncovered yet another example of corporate irresponsibility. Chesapeake’s CEO, upon review of the company’s books, was spending money on things besides natural gas that included “no budgets, a massive wine collection and a nine-figure bill for parking garages,” sources told CNBC, who hosted stock guru Jim Cramer about the matter last week:

The company also entered into an agreement to eliminate about $7 billion in debt and secure $925 million in debtor-in-possession financing.

Other factors for the shale and fracking champion included that the crushing debt load was combined with a gas market slump, Bloomberg said.

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