Chesapeake Energy (CHK) Said to Plan Bankruptcy - Bloomberg

June 8, 2020 4:45 PM EDT

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(Updated - June 8, 2020 4:51 PM EDT)

Chesapeake Energy (NYSE: CHK) is preparing a potential bankruptcy filing that could hand control to senior lenders, according to Bloomberg, citing people with knowledge of the matter.

Chesapeake is negotiating a restructuring support agreement that could see holders of FILO term loans take a majority of the equity in bankruptcy, the report said.

Chesapeake is debating whether to skip interest payments due on June 15 and invoke a grace period while it talks with creditors. It also begun soliciting lenders to provide debtor-in-possession financing.

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