Source: London – Arabic Net
One of the largest and most famous American companies operating in the energy sector has collapsed, thus being the latest victim of the economic crisis caused by the emergence of the emerging “Corona” virus, which has disrupted most aspects of life in the world, and led to a sharp decline in the demand for energy of all kinds.
And on Sunday, Chesapeake Energy Company filed a request with the US authorities to declare bankruptcy and requested protection from creditors, after it became “unable to face a mountain of debt that is no longer possible after years of natural gas prices stabilizing at low levels,” according to a newspaper. The American “New York Times” in a report read by “Al Arabiya Net”.
According to information gathered by Al Arabiya.net, the Chesapeake Energy Company was incorporated in the United States in 1989, and it is listed on the New York Stock Exchange, and it is considered one of the giants of American oil and natural gas producers, during which last year 2019 produced more than 484 thousand A barrel of oil per day, which is more than the production of entire oil states.
The New York Times said in its report that Chesapeake Energy has helped in the past years transform the United States from an importer of natural gas into an important product and president, under the management of Aubrey McClendon, the man who founded the company 31 years ago in Oklahoma, USA, and worked As CEO.
But McClendon himself, who turned this company into one of the energy giants in the world, is the same one that caused him to download more than $ 20 billion in debts, which led to him losing his position as CEO and expelled him from the company in 2013, and since that time the company has struggled to survive without Feasibility is facing a lot of financial trouble.
During the first quarter of this year 2020, the company “Chesapeake” lost about $ 8.3 billion US dollars, and by the end of last March, the company had cash assets amounting to only 82 million dollars, that there are bonds issued by the company deserving of repayment in August and amounting to 192 million dollars , Which is much more than its cash assets.
By the end of last year, the company was depositing in 2019 with debts exceeding $ 9.5 billion.
The company issued a statement announcing that it had deposited an application with the authorities requesting protection from creditors under Chapter XI, so that it could undertake the restructuring.
The company revealed that it obtained credit facilities worth $ 925 million as part of an agreement with creditors, and that the agreement includes canceling debts of more than $ 7 billion.
The company has 1900 employees, and the declaration of bankruptcy is an indication of the crisis in the American and global energy sector due to the spread of the new “Corona” epidemic, which led to a significant decline in the demand for energy of all kinds.