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Sources: Chesapeake seeks advice from restructuring advisers

Wednesday, March 18, 2020 by

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Chesapeake Energy Corp has enlisted restructuring lawyers at Kirkland & Ellis LLP and investment bankers at Rothschild & Co, who specialize in reworking debt, amid a drop in energy prices, according to Reuters.

Before the oil price war between Saudi Arabia and Russia and the fallout from the coronavirus pandemic contributed to falling prices and driving Chesapeake’s shares down more than 50% in the last three weeks, the company was struggling with its debt pile of roughly $9 billion.

Now, Chesapeake is weighing options. However, no debt restructuring move is imminent, according to sources who spoke to Reuters.

The advisers Chesapeake has enlisted have counseled on significant restructurings of large energy companies, including utility Energy Future Holdings Corp, the record $45 billion leveraged buyout that collapsed in 2014.

Learn more: Reuters > Exclusive: Shale gas pioneer Chesapeake Energy taps restructuring advisers

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