Photo: Chesapeake Energy page on Facebook
A large us company Chesapeake Energy, one of the leaders in the shale oil and shale gas since the beginning of the last decade, prepared for the bankruptcy, Reuters reports, citing sources.
The reason for this decision was a sharp drop in energy prices and large debts. Chesapeake is negotiating the loan for a billion dollars, which will help her in operating activities during the proceedings of bankruptcy.
Earlier it became known that the company was going to restructure the debt, which as at the end of last year reached 8.9 billion dollars.
However, the situation significantly worsened after oil prices fell several times. As a result, in 2020 the value of the shares of Chesapeake on the new York stock exchange fell by more than four times. The company hope to persuade the creditors, but are willing to skip a payment in August in the amount of $ 192 million. Difficulties will arise in July when you have to pay 136 million.
Earlier in April, Moody’s downgraded the company’s rating to junk, making new borrowing extremely expensive. Liquidity, on which it reported in February is linked with a credit line, but access to it may soon close.
Earlier, the President of the United States Donald trump instructed to develop a plan that will help the American oil industry against the background of the situation with coronavirus and the collapse in oil prices. In particular we are talking about additional money. However, sources in the Chesapeake believe that helping them not to wait.
Video, photo All from Russia.