Chesapeake Energy Asset Sales Plug Cash Drain: Corporate Finance
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Three months after Chesapeake Energy Corp. said it may fail to meet debt obligations next year, credit market investors are speculating increased asset sales will help the company plug a $22 billion funding shortfall.
Chesapeake bond yields have fallen to 6.48 percent on average from 6.76 percent on April 30, the day before the company said it may face a cash crunch in 2013, even as yields for speculative-grade peers rose, Bank of America Merrill Lynch index data show. Chesapeake last week raised its projection for 2012 asset sales to as much as $14 billion.