Chesapeake Energy, which has warned that it’s unsure if it can survive much longer, failed to make $13.5 million in interest payments that came due this week, according to a federal filing.
The pioneering energy company grew to become one of the largest natural gas producers in the U.S., but it’s racked up nearly $9 billion in debt. The Oklahoma City driller warned in May that “there is substantial doubt about the company’s ability to continue as a going concern” with natural gas losing about a quarter of its value this year alone.
Chesapeake had struggled for years before the pandemic hit. Now, demand for energy has fallen in tandem with global economic growth due to a global pandemic. That has exacerbated weaknesses across the energy sector.
If Chesapeake fails to make its interest payments within 30 days, it could be declared in default, according to a regulatory filing with the Securities and Exchange Commission.
That would make it even more difficult for Chesapeake to fund operations because the cost of securing new loans will grow.
The post Chesapeake, struggling to survive, skips $13.5M in payments appeared first on Morningology.
