Thread regarding Chesapeake Energy Corp. layoffs

Let's do the limbo! How low can you go!

Anonymous204949 - are you actually arguing that banks get fleeced? haha who gives a f*** about banks - they fleeced the US taxpayers with TARP and not one single person went to jail for it. They've been fleecing us all for years - I have no sympathy for banks.....NONEE!

.71 in1999 could test that for sure.

That has become a common survival strategy for cash-strapped over-indebted companies. Existing creditors get pushed down the capital structure by new money that comes as second lien debt. If the company restructures in bankruptcy court, they’re now facing much diminished recovery rates, if any. In other words, they’re getting fleeced. In anticipation, this debt gets demolished as the new risk gets priced in. It’s a ruthless strategy.

Good point! It sure worked for GM.

Why is everyone so gloom and doom - a Chapter 11 bankruptcy (reorganization) as opposed to a Chapter 7 (liquidation) would be a good thing for CHK. They would be able to shed their debt for pennies on the dollar and emerge with viable assets and no debt. Couple this with new leadership and you will see CHK roaring back to life. Keep your chins up people - it ain't over at all.

Has anyone ever considered the people recently laid off may be in a better position to find a job than employees in future rounds of layoffs? How many good non-energy jobs are available? The first laid off will have the best shot at finding them.

We'll see how long you can "sit back and wait" when the stock is trading for less than $1.

Here's what you are missing. CHK may owe more than what the assets are now worth but the banks taking those assets doesn't solve anyones problems. If the bank takes them then they take the loss because the assets won't sell for what they have in them. The smarter move is to let CHK limp along and pay what they can while they can and hope that the assets recover some of their value. When the assets reach a value that the banks can realistically get out of them then they will consider forcing a sale. But until then the right move is to sit back and wait. No one has any interest in losing money so sometimes the best decision is to simply continue the course.

But by all means continue to revel in CHK's struggles... Troll.

As we speak, Apache, Devon, SandRidge, Continental....take you pick, are all trading up on the day. Meanwhile, Chesapeake continues to freefall. The bankruptcy trustees will be clamoring for this one.

CHK's remaining assets are not economical at current prices, therefore no one is going to be interested in buying them. Less than 12 months ago leadership was touting our strong liquidity and balance sheet position, and now the likelihood of CHK to continue as a going concern is becoming a real issue. The cash will be all but spent by end of year, and any draw on the credit line will likely push CHK closer to default. The industry as a whole is hurting, however CHK seems to be performing and responding much worse than nearly everyone else in the peer group. It is painful to say, but I think the party might be over for CHK. At least it was a good run.