Chesapeake in not going bankrupt anytime soon. The company owes about $9billion dollars and the banks value it at about $7billion. Chesapeake will pay about $700million in interest each year and hopefully $300million in principle. That is a billion dollar a year cash cow. You don't k–l those...
If the banks allowed Chesapeake to default on the debt they would loose $2billion. In there position which would you prefer? $1bill a year give or take a few hundred million. Or the sure loss of $2billion, no cash flow and the liability of owning oil and gas assets with no one to operate them?
Chesapeake should not be concerned about its debt. The banks should be concerned about their assets....