Reuters: Chesapeake prepares to file for bankruptcy
Tuesday, May 5, 2020
After months on shaky ground, Chesapeake Energy Corp is preparing to file for bankruptcy as it deals with the reality of low energy prices, Reuters reported last week.
The company has held discussions with creditors about a loan of roughly $1 billion that would aid operations while it navigates bankruptcy proceedings. These loans are referred to as debtor-in-possession financing and are vital to help companies seeking Chapter 11 bankruptcy to sustain as much of their business as possible during court proceedings.
Chesapeake’s discussions about possibly obtaining bankruptcy financing are in early stages, and the company has made no final decisions about how it plans to address its debts.
Learn more: Reuters > Exclusive: Chesapeake Energy preparing bankruptcy filing
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