Fund company braces for potential Chesapeake debt restructuring – WSJ

Chesapeake Energy (CHK +0.9%) shareholder Franklin Resources (BEN -2.4%) is taking steps to prepare for a potential debt restructuring or bankruptcy by the shale driller, WSJ reports.

Franklin, which owns a substantial chunk of Chesapeake’s nearly $9B in debt and holds a 12.4% equity stake in the company, has hired the Akin Gump Strauss Hauer & Feld law firm for negotiations in advance of a possible default, according to the report.

Chesapeake faces a $136M coupon owed to junior bondholders on July 1 and a $192M bond maturity payment due Aug. 15.


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