Yesterday’s testimony was surreal, especially the afternoon session—Bradley Martin, the Chairman of the Board—the Frank Sinatra of Chesapeake.
According to Brad’s testimony, in May while the Board was scheming to punt on voiding 3.8 billion in liens and giving the Unsecured Creditors 10 million for their billions in losses, the Board voted 20 million in compensation for the Officers and a few others—9 million just to Lawler.
In sum, for bankrupting Chesapeake, the board voted to award certain people 200% of what it was giving the Unsecured creditors and shareholders who lost billions????
In addition, Brad gets $350,000 a year for being the Chairman of the Board—payable $250,000 in stock and $100,000 in cash. There is a rule that Bradley can take his fee all in cash if he opts to—exercising the cash option results in a somewhat smaller payment than $250,000 (180,000?).
Guess what, Bradley decided to take his fee in all cash. Did Bradley, Mr. Big, really have to wring those last dollars out of a corporation his leadership had just bankrupted? Are these people sociopaths?
I have a bad feeling about the judge too.
The judge tries to come off as Ned Flanders like. He’s been making excuses for the witnesses all week. Yesterday, speaking in a sing-songy fashion, he explained to the debtors how he had to get across the street for Christmas Lunch with his staff—the Judge just had to!
The judge pointed that Bradley wasn’t a lawyer and told the UCC lawyer take it easy on Bradley. The judge seemed to overlook the fact that for years Bradley has made more money than 99% of all lawyers for giving legal advice.
Don’t get caught with a joint in Texas or Oklahoma, a judge will toss you in jail and fine you for everything you have and much of what you will have.
Lose billions in other peoples’ money and you can expect to get coddled by the judges in the Bankruptcy Court.
One last thing. Martin testified it was him who recruited the big thinker—Doug Lawler. Martin also testified that although he had been on the Board of Directors forever, Bradley never had a career in the oil & gas business, never worked a day in the oil & gas business. Bradley owned department stores and invested and advised other completely unrelated businesses. Then all of a sudden, he was Chairman of the Board of Directors of Chesapeake Energy—Exploration’s answer to Don King.
How bout that? Only in Oklahoma!
1 reply
Mr. Martin does not like to be referred to by his given name, Bradley, which Mr. Martin considers too formal.
Mr. Martin prefers to be known by the sobriquet he picked up in college: “Tennessee Jed.”
It has something to do with his favorite Grateful Dead song.