Thursday, April 19, 2012

As Shares Hit Three Year Low, "Chesapeake Energy says shareholders are insulated from CEO’s personal financial commitments" (CHK)

From Bloomberg via the Washington Post:
Chesapeake Energy Corp. said shareholders are protected if Chief Executive Officer Aubrey McClendon defaults on personal loans because the company holds first liens on oil and natural-gas wells he used for collateral.

McClendon, the co-founder and chairman of the second- largest U.S. gas producer, has been using his 2.5 percent stakes in some Chesapeake wells as collateral for personal loans, the Oklahoma City-based company said today. Chesapeake and its investors aren’t at risk should the CEO default because the company has an overriding claim to the oil and gas that flows from those wells, General Counsel Henry J. Hood said today....MORE
Honey, I Pledged the Kids as Collateral: "Visualizing Chesapeake's Aubrey McClendon "Rehypothecation" Scheme... And The China Trail" (CHK)

UPDATED--Chesapeake's CEO Took $1.1 Billion in Unreported Loans (CHK)