US Major Shale Company Chesapeake Energy May File for Bankruptcy Protection as Early as This Week

[Asia Economy Reporter Naju-seok] Chesapeake Energy, a major U.S. shale company, is expected to file for bankruptcy protection as early as this week.

On the 15th (local time), MarketWatch reported that Chesapeake Energy is likely to file for bankruptcy protection under Chapter 11 of the Federal Bankruptcy Code soon. Chesapeake Energy is reportedly negotiating a DIP (debtor-in-possession, maintaining existing management) loan of about $900 million (1.09 trillion KRW).

Chesapeake Energy is known to be negotiating with existing creditors to convert old debts into new bonds. Additionally, Chesapeake Energy is also negotiating the conversion of existing debt into equity.

Chesapeake Energy plans to file for bankruptcy protection around the 18th once negotiations with creditors are completed.

Chesapeake Energy's debt is reported to exceed $9 billion.

Headquartered in Oklahoma, U.S., Chesapeake Energy has faced difficulties as oil prices plummeted amid decreased demand due to the COVID-19 pandemic.

Earlier in April this year, another major U.S. shale company, Whiting Petroleum, also filed for bankruptcy protection.

This content was produced with the assistance of AI translation services.