[ROCKMAN]

Plant - Tsk tsk. Many companies that filed Chapter 1 have been some of the most active drillers once they were restructured. As I just pointed out under the article in the news section Chesapeake, upon filing Chapter 11, has now arranged a $1 billion loan so it can keep operating. Assets may be sold under restructuring. Or the debt owners may end up owning most if not all of the company stock. If that happens repaying $7 billion in debt plus interest payments disappear off the books and the company may be functioning very well off of existing cash flow. As well as potential new credit lines. Will be a number of months before we know how the dust settles.

BTW back when oil prices originally crashed 83 of the 84 companies that filed Chapter 11 came out financially viable. Of course, that was then. After the latest shock who knows: I don't keep up with now that I've retired. Wife and I just sit back and coast along since we have zero debt to deal with didn't even file Chapter 11. After 40 years in the oil patch I knew how to play the long game. Essentially cashed out during the last boom. LOL.

[Plantagenet]

Plant - Many companies that filed Chapter 1 have been some of the most active drillers once they were restructured. As I just pointed out under the article in the news section Chesapeake, upon filing Chapter 11, has now arranged a $1 billion loan so it can keep operating. Assets may be sold under restructuring. Or the debt owners may end up owning most if not all of the company stock. If that happens repaying $7 billion in debt plus interest payments disappear off the books and the company may be functioning very well off of existing cash flow. As well as potential new credit lines. Will be a number of months before we know how the dust settles.

BTW back when oil prices originally crashed 83 of the 84 companies that filed Chapter 11 came out financially viable. Of course, that was then. After the latest shock who knows: I don't keep up with now that I've retired. Wife and I just sit back and coast along since we have zero debt to deal with didn't even file Chapter 11. After 40 years in the oil patch I knew how to play the long game. Essentially cashed out during the last boom. LOL.

Personally I don't invest in bankrupt companies, and the point of my post was that Chesapeake's bankruptcy was a warning that other companies in the fracking sector are also at risk of going bankrupt. Even if the company is re-organized into some kind of new corporate entity instead of being sold off, there is significant risk that all the existing shareholders of CHK stock will be wiped out.

You are right that CHK has obtained the judges approval for a $930,000,000 line of credit from its existing debtors. However, this link of credit in no way solves the problems at Chesapeake. All it does it add another ca. billion dollars in debt to the company's ledger, at a time when it already isn't generating enough money to pay off its debts and so had to file for bankruptcy. AND CHK's debit is HUGE-----the number I see reported for CHK debt is 11 billion dollars----not the 7 billion you are suggesting.

Companies go bankrupt because they aren't taking in enough money to pay their debts and expenses. CHK taking on more debt doesn't solve this basic problem----- it only makes it worse.

I hope you agree with this simple idea----CHK isn't going to get out of debt by taking on a huge amount of additional debt.

The purpose of the DIB loan is allow CHK to keep operating while it is in bankruptcy , allowing it to make payments for a while longer on the ca. 11 BILLION dollars in debt that is forcing the bankruptcy and also maintaining the infrastructure and paying some staff and land royalties and such while the bankruptcy proceedings continue.

chesapeake-energy-gets-bankruptcy-court-approval-for-925-million-dip-loan-2020-06-30


I'm sure some people in the oil Biz have sentimental attachments to Chesapeake and want to see it continue to operate. But if you look at this totally objectively, there is significant risk that CHK shareholders are going to be wiped out.

Good luck to all........and Good call on your part, Rman, cashing out at the top and then retiring.

Cheers!

[rockdoc123]

I defer to Rockman on the Chapter 11 arguments as I know being in the Houston oil patch he has been "close to the sand face" for a couple of decades. I agree with him completely that in almost all cases the company has come out stronger and done pretty well.

But a few things which actually make this look like a very good bet to come out of Chapter 11 smelling like roses, especially if oil and gas prices recover somewhat.

IN terms of their debt it is important to note that approximately 40% are notes that do not mature until 2025 – 2027. As well $1.9 billion is a revolving credit facility (so not something that has been used necessarily and would be netted out of total debt). Hence the debt that must be paid back is in reality is $7.5 billion (pretty close to the number Rockman pointed to).

According to CHK first quarter 10K they have $34.748 billion in assets when production, equipment etc is calculated at cost. When you take into account DD&A already credited to those assets the total asset value is $16.19 billion. Of the total asset value Proved oil and natural gas properties make up a value of $30.765 billion. No amount is calculated for Probable or Possible reserves which are generally a good percentage in the sorts of plays CHK has been chasing. That value may be indicated in terms of an NPV on filings to the SEC that I am not aware of. Given DD&A already taken on the oil and gas properties is $20 billion and that value does not reflect the actual value if sold today (i.e. DD&A is an accounting procedure for taxation purposes) the ratio of debt to net asset value is quite close to 0.5 which is pretty respectable. Even with the addition of reorganization loan debt it looks OK. The issue is that with current prices the properties aren’t throwing off necessary cashflow although using forward strip they will be.

From the other side of the ledger they have $2.39 billion in current liabilities and $9.40 billion in long term debt. Note that debt was at $22 billion just 3 years ago. Again the actual debt repayable will be about $7.5 billion.

Their revenues in first quarter were $2.54 billion and if you look at only the cost part of the operating expenses (ie ignore DD&A and one time impairments) that equates to positive cash flow of approximately $868 MM. That is the number the group reorganizing will look at, ie. the ability of the company to operate withing cashflow and spin out positive cash. They will also look at potential value growth if they obtain all or a portion of the existing market cap value of $115.9 MM realizing that the 52 week high was closer to $10 billion in market cap and a large proportion of that potential 86 times increase in value is directly attributable to the large drop in oil price.

Note that during the period of Chapter 11 cashflow from operations will be improved by about $160 MM as interest will stop accruing (until Chapter 11 is solved) and pref dividend payments will cease.

My point is this should actually look pretty good to the group restructuring the company.

[GoghGoner]

Those assets are worth only what somebody else will pay to own them. I used to believe that were actually valued in some legit way but they are not and may be worth very little when the bidding is done.

[coffeeguyzz]

Rocdoc
Excellent breakdown.
Chessy's assets in the PRB are pretty good, but still very much in the evaluation phase.
Local pipe owner is speaking up about contractual commitments being honored.
Much back and forth yet to be finalized.
Their EF purchase via Wildhorse ($4 billion) looked a lot more attractive at $60/$65 WTI than $40, but that's the way it goes.

Relating to NEPA exclusively, their top 6 current wells - 2 each on 3 pads - have produced ~49 Bcf (thattsa 'B' as in 'Billion') in under 8 months online each.
Those numbers are simply astonishing. (For some context, those wells can already supply the yearly residential gas needs of Cincinatti, Pittsburgh, St. Louis, Buffalo and still have plenty to spare. 6 wells, ~$50 million cost. 8 months production).
Incredible tangible value to be had if/when legacy debt is addressed.

GG. Chevron just had an open Data Room exercise the past few days for qualified, potential buyers for their near 1 million net Appalachian Basin acres.
We may get to see in a few months just what this productive, yet off-the-fairway leasehold is worth in hard money to professional operators.
The 'giveaway' from Shell (SWEPI) to NFG/Seneca a few weeks back should provide a clue.
While Shell lost their ass, Seneca may be in a position to profitably produce under $2/mmbtu.

Rockman
So good to hear from you and hear that you are doing well.
Your legendary contributions on TOD to an anxious world during the Deepwater Horizon tragedy will long be remembered - and appreciated - by the several thousands who learned from your informed, compassionate contributions.
Best wishes to you.

[Plantagenet]

Chessy's assets in the PRB are pretty good, but still very much in the evaluation phase.
Local pipe owner is speaking up about contractual commitments being honored.
Much back and forth yet to be finalized.
Their EF purchase via Wildhorse ($4 billion) looked a lot more attractive at $60/$65 WTI than $40, but that's the way it goes.

Relating to NEPA exclusively, their top 6 current wells - 2 each on 3 pads - have produced ~49 Bcf (thattsa 'B' as in 'Billion') in under 8 months online each.
Those numbers are simply astonishing. (For some context, those wells can already supply the yearly residential gas needs of Cincinatti, Pittsburgh, St. Louis, Buffalo and still have plenty to spare. 6 wells, ~$50 million cost. 8 months production).
Incredible tangible value to be had if/when legacy debt is addressed.

No doubt Chesapeake still has some very attractive assets. Their problem is cashflow.....energy prices are really really low right now.

Chesapeake may have some great acreage with productive wells but the company has still been losing boodles of cash.....the company lost almost half a billion dollars in 2019 and they've lost hundreds of millions more this year and its gotten so bad they are welching on the money they owe to their own contractors and service companies.

Consider "Hi-Crush" ....a fracking service company and one of the companies trying to get deadbeat Chesapeake to pay them millions of dollars they are owed for past services is itself going to declare bankruptcy. Hi Crush stock (HCR) is getting crushed----it is currently selling for 0.16 cents a share.......

And of course that is my point. The fracking sector is in deep doo doo because energy prices are so low. Companies like Chesapeake can't pay their bills, and companies like High Crush who depend on Chesapeake and similar companies aren't getting paid. Just as I predicted when Chesapeake went into Chapter 11---other companies in the fracking biz like Hi Crush are also going bankrupt....and IMHO Hi Crush won't be the last companies in the fracking sector to go file for bankruptcy.


The collapse of Chesapeake has contributed to the crush of Hi Crush.....that fracking service company supplied millions of dollars of sand to Chesapeake but never got paid. Now Hi Crush is also on the verge of declaring bankruptcy........just as I predicted.

Caveat Emptor

and

Cheers!

[rockdoc123]

Chesapeake may have some great acreage with productive wells but the company has still been losing boodles of cash.....the company lost almost half a billion dollars in 2019 and they've lost hundreds of millions more this year and its gotten so bad they are welching on the money they owe to their own contractors and service companies.

As I said above paper losses, not cash losses. When you look at the cash only items in their filings they actually had a small positive cashflow. The large loss in 2020 is due to a one-time impairment and DD&A. As to 'welching', almost always companies who are in dire straits work to pay off their contractors and service providers either through a schedule or at a discount. It has been that way as long as I can remember.

As to service companies being in trouble, well they are the first to go whenever oil prices drop. It happened back in the eighties, it happened in 2008-09 and it happened in 2015-2016. The problem is that such companies are necessarily built on margin. They take out loans to build/buy the equipment they need with the plan of paying that equipment off quickly and getting into positive cash flow. Few oil companies, at least in my experience, pay their bills at the 30 day notice period but wait out to 60 or even up to the 90 day default period. The reason is that gives them some advantage in cash management but for the service providers it is a major pain. The small companies live hand to mouth so any sustained downturn is a death sentence. One only has to look at the satellite photos over Halliburton or Schlumbergers storage facilities to see the large number of drilling and completion rigs stacked, waiting to be deployed if prices ever return to know this is a competitive business. Small service companies did well in the US by cutting prices below that charged by Big Blue and Big Red but in doing so they ran dangerously close to the margin. Whereas HBT and SLB charged enough to keep a decent war chest for lean times the small companies couldn’t do so and are the first to go. Suffice it to say they will be replaced by new service company startups when prices return. The opportunity is too attractive for those who think they can avoid the downturns.

[Plantagenet]

As to 'welching', almost always companies who are in dire straits work to pay off their contractors and service providers either through a schedule or at a discount. It has been that way as long as I can remember.

Thats a nice fantasy but in reality Chesapeake failed to pay off its creditors and now has gone bankrupt. The list of creditors listed in the bankruptcy filing include multiple contractors and service providers that Chesapeake welched on.

Cheers!

PS: Chesapeake isn't the only bankrupt Shale Oil co.......Bankruptcies are coming fast now in the fracking sector....

wave-of-shale-bankruptcies

While Chesapeake was the headline in the U.S. energy bankruptcies this past week, two other energy firms filed for protection from creditors—Permian producers Lilis Energy and Sable Permian Resources.....Before that, between January and May, 18 oil and gas firms in North America filed for bankruptcy, including Diamond Offshore Drilling and Whiting Petroleum, data from law firm Haynes and Boone showed.


Whiting Petroleum goes bankrupt too.....

[rockdoc123]

Thats a nice fantasy but in reality Chesapeake failed to pay off its creditors and now has gone bankrupt. The list of creditors listed in the bankruptcy filing include multiple contractors and service providers that Chesapeake welched on.

It is clear you haven't a clue what Chapter 11 entails. They are not liquidating the company in which case all debts whether they be to service providers or banks holding preferred notes end up being wiped. They are undergoing reorganization where the company seeks to pay off all of its debts in time. The reason for declaring Chapter 11 is so that the company is protected from lawsuits by debt holders, essentially it gives breathing room for the group reorganizing to look at changing company structure, cutting costs, selling non-core assets, and rescheduling payments. In this case, the holders of notes or those who have filed invoices prior to Chapter 11 being declared will generally get paid in the future. Unfortunately for some of the service companies, it will not be soon enough.

It is amazing to me how people casually throw around the term "bankruptcy" without fully understanding what it entails. Rockman tried to educate people on it here a couple of times but I guess it didn't sink in.

[coffeeguyzz]

... and Whiting - despite being in bankruptcy - is still producing almost as much as it was 8 months ago.
Don't know for how long that may continue ... decades, perhaps.
One never knows.

It is kinda amusing to see so many Peak Oil types waving this non stop banner of financial precariousness regarding the shale boys since at least 2012, by my reading.
At the mid point of 2020, one might think a better understanding of how these systems function (financial, that is. The operational aspects have NEVER been understood by the Peak Oil community ... and probably never will be) would well serve the anti hydrocarbon folks.

At least if they sincerely wish to deal with Reality.
Referencing long running incompetents like Art Berman and David Hughes guarantees an unbroken record of simply being wrong.

[Plantagenet]

It is kinda amusing to see so many Peak Oil types waving this non stop banner of financial precariousness regarding the shale boys since at least 2012, by my reading.

It is kinda amusing to see so many oilie types frantically waving this non stop banner of financial success regarding the shale boys and claiming service companies are all getting paid, even as service companies are listed right on the sworn bankruptcy filings in the bankruptcy courts as NOT getting paid and a couple of dozen companies in the shale biz have just gone bankrupt and more oil companies and service companies in the shale biz are going bankrupt even as we speak.

Next you guys will be claiming that up is down.

Cheers!

[rockdoc123]

It is kinda amusing to see so many oilie types frantically waving this non stop banner of financial success regarding the shale boys and claiming service companies are all getting paid, even as service companies are listed right on the sworn bankruptcy filings in the bankruptcy courts as NOT getting paid and a couple of dozen companies in the shale biz have just gone bankrupt and more oil companies and service companies in the shale biz are going bankrupt even as we speak.

1. oil prices collapsed....what did you think was going to happen? It's a different story today than it was a year ago.
2. as mentioned before, you use the term "bankruptcy" and you have no appreciation of what it entails.
3. please show us all of the "service companies are listed right on the sworn bankruptcy filings in the bankruptcy courts as NOT getting paid". If they have filed for Chapter 11 restructuring these service companies must get paid or the fee renegotiated as the courts will not allow for restructuring without all debts staying intact at the time of filing. A company is not going to declare they aren't paying service providers unless they are declaring insolvency, which almost none of the oil and gas producers has done to this point in time.
4. the morons on this site who continue to bemoan the insolvent shale producers have shown a lack of understanding of how to read a financial statement. They do not understand the term Net Profit as it applies to oil and gas accounting, they do not understand the concept of paper losses nor the effect those have on profit/loss calculations. More importantly, they do not understand that public companies in the oil and gas business are expected to reinvest their cash flow in new properties, company acquisition, wells or pay dividends to shareholders. As a consequence Net Profit is generally zero or negative even in good times...actual cash flow however can be quite good.

[coffeeguyzz]

The Hi Crush proppant company used above as an example - I presume - of collateral damage in BK proceedings is actually only one of at least 3 proppant companies seeking Chapter 11 releif ... Vista Proppant and Covia being the other 2.

Particulars from Covia's filing this week may further enlighten observers of 'how these things work' ...
Covia was formed by a merger of companies 2 1/2 years ago.
Currently has 1,600 employees, 32 mining facilities, 2,000 customers, amongst other assets ($250 million cash equivalent liquidity also).
By shifting its current $1.6 billion in debt to equity ownership by debt holders, $1 billion in debt is expected to be eliminated, along with modification of ~$200 million/year expenses related to railcar leasing and excess production capacity.

This is a tiny example, one of thousands that occur annually in the US.
There are a wide range of factors that can and do play roles in these affairs, including fraud, incompetence, bad timing/disruptive events, on and on.
It is simply one aspect of how the capitalistic system works.

Future operations - including potential landlords, employees, vendors - will ALL be mindful that a formerly bankrupt company is seeking to continue to engage with the marketplace.
It will be determined largely by individual decisions - case by case - how/if emerged-from- bankruptcy companies fare going forward.

This current situation with a worldwide pandemic coupled with a flooding of supply in the hydrocarbon world is clearly unprecedented.
The upstream operators have actually displayed - once again - an astonishing degree of adaptability, resourcefulness and resilience.

Those of us with some familiarity with this culture are not the least surprised.

[Plantagenet]

oil prices collapsed....

Precisely. AND what did YOU think was going to happen when oil price collapsed?

Guess what... Numerous companies in the fracking sector are going bankrupt because oil prices collapsed.

Contrary to your claims, they are welching on their payments to service companies. Thats what happens when companies go bankrupt....they don't have enough cash to pay all their obligations and debts so they go into CHP 11 bankruptcy.

please show us all of the "service companies are listed right on the sworn bankruptcy filings in the bankruptcy courts as NOT getting paid"

Will you stop claiming they are getting paid if I list them for you?

As a bonus, I'll list the debts that Chesapeake hasn't paid to them, according to the court filing.

I mean, its just silly for you to claim again and again that Chesapeake is paying its debts when the Chesapeake court filings show Chesapeake actually didn't pay numerous debts to multiple service companies.

OK....lets see if you can be honest this time. I'm going to list the drilling and oil industry service companies that Chesapeake owes money to, according the court filing

1. Chesapeake owes Halliburton Energy Services Inc. $21,104,132. Have you heard of Hallburton? They are pretty well known in the energy biz crockdoc. A service company owed money by Chesapeake. Imagine that????

2. Chesapeake owes Williams Companies Inc. $13,854,145. Have you heard of Williams Company, crockdox? They are also well known in the energy bix.

3. Chesapeake owes Enterprise Crude Oil LLC $6,469,804. Heard of them?

4. Chespeake owes Hi-Crush Partners LP $4,071,065. I already mentioned them in a post above. Service company, right? Chesapeake owes them money, right? Get it now, right?

5. Chesapeake owes Baker Hughes $3,586,155. I'm getting tired of listing all the service companies, especially since I know already you aren't honest enough to admit these are service companies owed money by Chesapeake.

6. Chesapeake owes Schlumberger Technology Corp. $2,630,025. Now that makes me mad. I bought boatload of schlumberger stock when it was down near ca. 10 in March. I now I find Chesapeake is welching on paying my company what they owe. What a bunch of friggin deadbeats! Pay my guys the money you deadbeats!!!!!

7. Chesapeake owes B&L Pipeco Services Inc. $2,354,421. Another service company another debt. Get it now?

8. Chesapeake owes Patterson-UTI Drilling Company LLC $2,282,158 ditto from above.

9. Chespeake owes DNow LP $2,154,723. ditto from above.

I'll stop there.

My point is made.

Oil prices have collapsed.

Chesapeake and a large number of other companies in the fracking sector are going bankrupt.

This means they aren't paying their debts to multiple service companies and banks and other creditors.

AND...More bankruptcies are likely.....for instance Hi-Crush is on track to file for bankruptcy soon and Chesapeake welching on their debt to Hi Crush didn't help.

Do you get it now?

Cheers!

[coffeeguyzz]

This is actually falling down funny.
The above poster SHOULD be embarrassed by the stunning degree of ignorance displayed by those debt numbers, but my experience over the years would indicate the lack of self awareness precludes any realistic chance of enlightenment.

65 million dollars owed to the top service providers?
65 million?
This company has something like 9 billion in total debt ... the bulk to their note holders (aka lenders).
Without getting into the weeds, that 65 million is probably just a few days revenue for the company.
Chances of 100% payback to those vendors (absent squabbles about poor performance, etc.) should be total.
If not, Chessy will have a VERY tough time lining up future vendors.

65 freaking million ... really?
If the Hi Crush people are being driven to BK over a 5 million dollar non payment, that would indicate financial stresses going far beyond the situation with only Chesapeake.

[rockdoc123]

Contrary to your claims, they are welching on their payments to service companies. Thats what happens when companies go bankrupt....they don't have enough cash to pay all their obligations and debts so they go into CHP 11 bankruptcy.

I mean, its just silly for you to claim again and again that Chesapeake is paying its debts when the Chesapeake court filings show Chesapeake actually didn't pay numerous debts to multiple service companies.

Do you just keep repeating yourself without ever bothering to read and comprehend what others are saying? Where did I claim they did not have payments that were outstanding? Nowhere. The term "welching" seems to suggest you think they will never pay their service providers. Nothing could be further from the truth, Chapter 11 reorganization allows them to do that.

As I have said several times you need to actually understand what is meant by “bankruptcy” in this context. It is very clear you do not but for some reason, that doesn’t stop you from ranting on and on.

These service companies are considered to hold valid debt in the way of outstanding invoices. The $552 MM in accounts payable forms part of CHK long term liability that I previously referenced of $9,472 MM. Those do not disappear in a reorganization…they are paid out either overtime or a negotiated settlement happens (some companies will take a discounted payment as they want the money now). Where did I claim they did not have payments that were outstanding? Nowhere. But keep making stuff up….its seems to be how you structure any argument.

In actual fact the $925 in DIP fianancing they received is intended to keep them operating and paying off their service providers.

Chesapeake has provided the following information to their service providers.

Will I be paid for the goods and services I provided to Chesapeake before the filing date?
Our motion seeking Court authority to pay certain pre-petition obligations was approved. For
liabilities not covered by the relief granted by the court, there will be a process allowing parties to file a claim form. More information about this process will be sent closer to the deadline for filing a Proof of Claim

What does this mean for vendors/suppliers?
We will continue to operate the business as usual throughout this restructuring.

What about goods that were shipped before the bankruptcy filing and received after the filing?
For goods received by Chesapeake after the petition date of June 28, 2020, Chesapeake intends to pay suppliers in the normal course of business, according to the terms in place at the time of the filing. The U.S. Bankruptcy Code gives priority status to these post-petition payments. Chesapeake has sufficient funds to make these payments and will do so in a timely manner.

What happens to my existing contract with the company? Will there be any changes to our
services or contracts as a result of this filing? Can I renegotiate terms?
Our operations will continue in the ordinary course of business during this court-supervised process, and Chesapeake intends to pay suppliers in the normal course of business. As part of the bankruptcy process, contracts will be evaluated and any changes will be handled as part of the court proceedings. We value the important relationships that we have developed with our suppliers and vendors and will continue to work closely with you through this process.

Will I be paid for the goods and services I provide to Chesapeake on or after the filing date?
For goods received and/or services rendered to Chesapeake after the petition date of June 28, 2020, Chesapeake intends to pay suppliers in the normal course of business, according to the terms in place at the time of the filing. The U.S. Bankruptcy Code gives priority status to these post-petition payments. Chesapeake has sufficient funds to make these payments and will do so in a timely manner.

And CHK management has made this statement to shareholders and interested parties:

The Chapter 11 process gives us the opportunity to fundamentally reset our business and strengthen our capital structure in a sustainable way, so we can capitalize on our significant strengths and prosper regardless of commodity prices. By addressing the legacy debt and contractual obligations that have hindered our performance, we are positioning Chesapeake to capitalize on our dedicated people, diverse operating platform with untapped opportunities, proven track record of improving capital and operating efficiencies, and technical excellence.

This is precisely what Chapter 11 is about....a reset. Just as several of us have explained to you ad infinitum.

[Plantagenet]

The above poster SHOULD be embarrassed by the stunning degree of ignorance displayed by those debt numbers, but my experience over the years would indicate the lack of self awareness precludes any realistic chance of enlightenment.

Why should I be embarrassed?

You and crockdoc are the ones foolishly claiming that oil service companies who did work for Chesapeake had been paid for their work. If there is any "stunning ignorance" being displayed here it would seem to be coming from you and crockdoc.

The bankruptcy filing for Chesapeake 100% proves my point....Not only has Chesapeake welched on the money they owe to multiple large banks, they have welched on the money they owe to multiple oil service companies who did work for them.

In my post above I listed 9 separate service companies who have filed with the bankruptcy court seeking payment for the debts that Chesapeake has welched on. Again, the legal documents in the Chesapeake bankruptcy case 100% proves my case and disproves your ridiculous claims that the service companies had been paid for their work.

If you have evidence that the court documents are inaccurate or mis-stated I suggest you bring it to the attention of the Bankruptcy judge.

But if you have no such evidence, then you'll just have to accept that the court documents prove you wrong.

In light of the fact that the legal documents 100% support my case and 100% disprove yours, and considering that you've needlessly disputed this very simple and obvious point and wasted my precious time for two days now, I will now do a victory dance to celebrate my total triumph on the facts concerning this issue .... and then consider this discussion closed.


HA AH AH AHAHahahahahahahahah Here comes da bankruptcy judge HA AH AHAHAHAHAHAHAHah the legal documents prove it ahahahahahahahah I'm right you're wrong I'm right I'm right again AHAHAHAHAHa

Cheers!

[rockdoc123]

You and crockdoc are the ones foolishly claiming that oil service companies who did work for Chesapeake had been paid for their work.

If you have evidence that the court documents are inaccurate or mis-stated I suggest you bring it to the attention of the Bankruptcy judge.

But if you have no such evidence, then you'll just have to accept that the court documents prove you wrong.

You keep saying this but nowhere in any of my posts or in coffeeguyz posts was that statement made. Noone here but you has made the claim that CHK did not have outstanding creditors. Show us a quote or please just shutup. This seems to be your typical modus operandi on this site. You make up what others have said either because you are functionally illiterate or otherwise challenged and then proceed to argue continuously about something that was never said. Do you think others here do not see this? You are making a fool of yourself, something you seem to like to do constantly.

In my post above I listed 9 separate service companies who have filed with the bankruptcy court seeking payment for the debts that Chesapeake has welched on. 

Which is standard practice in Chapter 11. When a company files then all companies who are debt holders or have outstanding invoices issued prior to the date of declaration are required to submit claims. This does not mean that Cheseapeake had no intention of paying them (the term welch implies that) but simply that through the process of reorganization CHK is protected from law suits and had the time and help to get their finances in shape and pay off all of their debts. At no point in time prior to declaration of Chapter 11 did CHK stop payments to service companies or suspend payment of interest on their loans. They talked about the possibility of that happening but instead chose the reorganization route. Suspension of payment to creditors is what happens when Chapter 11 is declared. In the case of reorganization (which is what this is) one of the first steps is that all pre-bankruptcy payments are halted until such time as they can be sorted out by the group courts put in charge of the reorganization. CHK have said they are going to pay off debts…what part of that do you not understand?

You need to remove your head from your backside, although that seems to be a common place for it to reside.

[ROCKMAN]

Plant -- Sentiments cares for Chesapeake? LMFAO!!! Do you forget what I've explained I've done for much of my career? One of the reasons I know so much about Chapter 11 filings is that they are prime hunting grounds for companies to fuck over. As I've explained many times we are all very predatory. Be it financially wounded companies or service companies unsophisticated landowners. We are always looking for leverage. At some point CHK may be great stock acquisition. But very tricky timing and not for the faint hearted. My former billionaire owner made hundreds of $millions in quick profits doing exactly this. Some of which I helped him. Of course I felt bad for any geologist that might have lost his job as a result. OTOH he chose the wrong company to work for. As I have also pointed out many times: its not personal...just business. I've passed on a number of big salary offers in my career avoiding companies with unsustainable business plans.

And a couple of times didn't and paid a price for it. LOL

[Plantagenet]

At some point CHK may be great stock acquisition. But very tricky timing and not for the faint hearted.

Yes, thats what I’ve been saying. Occasionally companies go through CHP 11 and the debts are written down or refinanced and their stock turns out to be worth holding, but quite often the existing shareholders get TOTALLY wiped out in the reorganization.

Personally I would not buy CHK stock now that its in bankruptcy. I think its far too risky. But I did buy a bunch of Schlumberger back In March during the price collapse and I’m already up 80% on that purchase so I’m not totally down on the oil sector.

However, since both you And the foul-mouthed and dim-witted crockdoc seem to view the CHP 11 bankruptcy of Chesapeake in a positive light, perhaps you should take a flyer on their stock if you can figure out the “tricky timing.” If any of you DO decide to put your money where your mouth is, then I wish you luck.

Cheers!