Chesapeake Says it Has no Plans to File for Bankruptcy
NEW YORK (AP) _
sought to assure investors Monday that it is not planning to file for bankruptcy protection after a news report saying it hired a law firm sent its stock plummeting.
The energy company says it is working with Kirkland & Ellis to ``strengthen its balance sheet'' and currently has ``no plans'' to file for bankruptcy. Chesapeake says the law firm has advised the company for about 6 years.
Chesapeake, which is the second-largest producer of natural gas in the country, has struggled as natural gas prices have declined. The Oklahoma City company has slashed spending and cut jobs to save money.
Shares of Chesapeake Energy Corp. fell more than 50 percent to $1.50 Monday before trading was halted. Its shares are down about 93 percent in the last year.