Chesapeake Plunges 40% on Report It Hired Restructuring Adviser
- Shares plunge record 51 percent to lowest since April 1999
- Firm hired Kirkland & Ellis for restructuring, Debtwire says
Chesapeake Energy: No Plans to Pursue Bankruptcy
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Chesapeake Energy Corp., the U.S. natural gas driller that’s been slashing jobs and investor payouts to conserve dwindling cash flows, lost half its value after a report that it hired restructuring attorneys.
The shares dropped a record 51 percent after Debtwire reported that Chesapeake retained Kirkland & Ellis to help restructure a $9.8 billion debt load. The plunge triggered three circuit-breaker halts during the first half hour of trading and extended Chesapeake’s 12-month loss to about 93 percent. The free fall wiped out $838 million in market value in the first hour of trading on Monday.