Skip to content
Subscriber Only
Business

Chesapeake Investors Seen Signaling Surrender as Bonds Plunge

  • Energy producer bleeding cash amid tumble in commodities
  • `Investors capitulate to the reality of the situation'
Video player cover image

Chesapeake Bleeds Cash Amid Commodities Tumble

Laura J. Keller and Cordell Eddings
Updated on

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.