Chesapeake Investors Seen Signaling Surrender as Bonds Plunge
- Energy producer bleeding cash amid tumble in commodities
- `Investors capitulate to the reality of the situation'
Chesapeake Bleeds Cash Amid Commodities Tumble
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Credit investors who lent $11 billion to Chesapeake Energy Corp. are starting to give up on the company, the second-biggest junk-debt issuer in the U.S. energy industry.
Nearly all of the energy producer’s bonds plummeted to their lowest levels ever on Thursday as oil dropped toward a more-than six-year low. Chesapeake notes were the second-most actively traded in the high-yield market, just behind Petrobras Global Finance BV.