Another Energy Bankruptcy Wipes Out Stock Value Worth -$7 Billion Chesapeake Energy Files Chapter 11 (Video)
Another Energy Bankruptcy Wipes Out Stock Value Worth -$7 Billion Chesapeake Energy Files Chapter 11 Video by Silver Report
Chesapeake Energy has filed for chapter 11 bankruptcy after being swallowed up under massive debt obligations. The US energy sector has never recovered from the collapse in energy prices. It has nearly remained in a zombie state due to excess debt, in fact, foreign energy producers knew this when they crushed the price by flooding the world with cheap oil and the dominoes have begun falling.
Chesapeake energy’s filing means that the equity value of their stock will be close to -$7 billion and their investors will be holding worthless stock. All this from a company whose stock was trading near $84 about a month ago due to Robinhood users piling into the energy sector. Not everything that’s cheap is actually a good deal.