Chesapeake Energy to file for bankruptcy as soon as this week, sources say

Chesapeake Energy is preparing to file for bankruptcy protection as soon as this week, becoming the largest oil and gas producer pushed to the financial brink by this year’s energy market rout caused by the coronavirus outbreak, according to three people familiar with the matter.

The Oklahoma City-based company, co-founded by the late wildcatter Aubrey McClendon, is in the final stages of negotiating a roughly $900 million debtor-in-possession loan to support its operations while under Chapter 11 bankruptcy court protection, two of the sources said.

Chesapeake and major creditor Franklin Resources did not immediately respond to requests for comment.

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