Chesapeake Energy Files for Bankruptcy

Chesapeake Energy Cooperation, the company that owns the naming rights to the Thunder's arena, is filling for bankruptcy. Chesapeake was co-founded by Aubrey McClendon, who also owned part of the Thunder and was instrumental in them leaving Seattle for Oklahoma City.

.According to Royce Young of ESPN, the company signed a 12-year deal for the naming rights to the arena back in 2011. The agreement cost Chesapeake $3,000,000 in the first year and increases three percent every year after.

While it is not known how the company's situation will affect the name on the area, the contract will expire after the 2022-2023 season. In an e-mail to his employees obtained by The Oklahoman, Chesapeake's CEO Doug Lawler says.

Chesapeake Energy, which helped turn the U.S. into a major natural gas exporter but became known for an illegal scheme to suppress the price of oil and gas leases, has filed for bankruptcy https://t.co/Ui6nvs3vdx
— The New York Times (@nytimes) June 28, 2020

"This was not an easy decision, but it was a necessary one, given our legacy debt, contractual obligations, and the historic collapse of commodity prices."..."While the exact timing of the process is out of our control and subject to court approval, we plan to go through this restructuring process in as efficient a manner as possible."

Chesapeake's debt load is about $9-billion in its reorganization; the company will shave about $7 billion off that cost. McClendon was indicted for conspiracy to rig bids on oil and gas leases. One day after being indicted, he was killed in a single-car accident.

Lawler says it's essential for Chesapeake to focus on what it can control. "During this time, it is critical that we all focus on what we can control, namely continuing to safely and efficiently execute across all areas of our business."

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