May 11 (Reuters) – Debt-stricken Chesapeake Energy Corp confirmed on Monday it is considering a bankruptcy filing, among other alternatives, as it struggles with an unprecedented rout in oil and gas prices.
Reuters reported last month the shale gas driller was in talks to line up bankruptcy financing.
Chesapeake will not be able to remain in compliance with its financial covenants starting in the fourth quarter of this year, the company said in a filing www.sec.gov/ix?doc=/Archives/edgar/data/895126/000089512620000115/chk-2020033110q.htm on Monday.
The company said on Friday it will pay $25 million in incentives to 21 top executives to ensure they are ‘motivated’ through the downturn. (Reporting by Shariq Khan in Bengaluru; Editing by Ramakrishnan M.)
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