Thursday, April 19, 2012
Chesapeake shares slump on news of loans to CEO Aubrey McClendon
SAN FRANCISCO, Calif. - Shares of Chesapeake Energy Corp. slumped nearly nine percent on April 18 in response to a report that Chief Executive Aubrey McClendon borrowed $1.1 billion which he and the company had not previously disclosed.
McClendon secured the funds using his stake in Chesapeake's wells as collateral, Reuters said.
McClendon and Chesapeake told the media company that the loans do not pose a conflict of interest and they are private transactions.
Chesapeake shares closed on April 18 at $18.06, down 1.06 (5.54 percent) after dipping as low as $17.45 a share (8.7 percent) in intraday trading. In the past 52 weeks, CHK has declined from $35.75 per share to a low of $17.17. (Source: MarketWatch, April 18, 2012)