Chesapeake Energy readying bankruptcy filing: report

Chesapeake Energy readying bankruptcy filing: report

Shares of Chesapeake Energy Corp. fell more than 5% in the extended session Monday after a Bloomberg News report said the natural-gas producer is preparing to file for bankruptcy. The report, which cited people familiar with the matter, said that the filing could hand over control of the company to its senior lenders. Shares of the ailing company nearly tripled in the regular trading day, with investors also enduring 22 trading halts for volatility during the session. Chesapeake is negotiating a restructuring support agreement that could lead some lenders to take most of the equity in bankruptcy, although the terms of the agreement could change, the report said. A spokesman for Chesapeake declined to comment to Bloomberg.

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