Chesapeake Energy Corp (CHK)

[LouisDesyjr]

CHK issued 17.2 million shares for debt

It looks like on Friday that CHK issued an additional 17.2 million shares for bonds/debt of $105 million in bonds.

Another writer seems to think that the exchange allowed them to be made mostly whole if they sold off the shares into the open market:
http://seekingalpha.com/article/3959916-chesapeake-riskless-trade-everybody-loves?auth_param=1assr:1bevvij:26196d187a4bc7a36401a39391ffbca8&uprof=45#alt2

8K report on exchanging shares for bonds:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11268618-841-5048&type=sect&TabIndex=2&dcn=0000895126-16-000401&nav=1&src=Yahoo

The amount of shares is 2.6% of the outstanding amount.


While this helps CHK survive, they will need to do a lot more to make it.

I think the main motivation is to get the bond/debt holders to recover in full and leave the retail market stuck with worthless common shares. i.e. This is starting to look like the typical penny stock 'pump and dump' where convertible debt are exchanged for truckloads of shares, that are then sold into the retail market, after which the stock crashes since the company has no value.

Louis J. Desy Jr.