Chesapeake Energy warned about bankruptcy opportunity

US, WASHINGTON (ORDO NEWS) — American Chesapeake Energy Corp. warned that she might not be able to remain an existing venture, since a collapse in oil and natural gas prices jeopardized many years of debt repayment efforts. It is reported by The Wall Street Journal.

Chesapeake Energy, which has been at the forefront of the American shale boom in the last decade, has hired consultants to explore various options, including bankruptcy. The company expressed doubt about its ability to remain an operating enterprise.

In the first quarter of 2020, Chesapeake recorded a net loss of $ 8.3 billion, compared with a loss of $ 21 million for the same period last year. The company wrote off the value of its oil and gas assets by approximately $ 8.5 billion.

A company based in Oklahoma City has sold assets in recent years, seeking to reduce the significant debt that it has accumulated as a result of large expenses for acquiring drilling sites.

The position of the company has worsened in recent months amid a collapse in energy prices and a sharp decline in demand in the context of the coronavirus pandemic.

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