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Chesapeake is down 40%

Feb 8, 2016, 20:28 IST

Chesapeake shares dropped more than 40% on Monday morning and were halted three times for volatility.

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According to Debtwire, the oil and natural gas company hired Kirkland & Ellis to restructure $9.8 billion in debt.

Last week, the company announced that it was suspending quarterly dividend payments, as it continues to struggle in the fallout of the commodities crash.

The company had been bleeding cash for the last decade or so, even before the recent plunge in oil prices.

In the third quarter, Chesapeake wrote down the value of $5.42 billion worth of assets, and it reported a loss of $4.69 billion.

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As Chesapeake's stock fell on Monday, investors also dumped its bonds, sending the yield on the bonds due next year above 100% for the first time.

The stock has dropped 90% over the last 12 months. Here's a chart showing the fall on Monday:

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More to come ...

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