$CHK Everybody please read this person's comments. He either has never read the bond covenants or he has ZERO understanding of a firms capital structure. If there was anything good in his comments it is his recognition that CHK eliminated all of the secured debt since 2016. Let me say that again, CHK ELIMINATED ALL OF THEIR SECURED DEBT SINCE 2016. So what happens when I firm gets their ass in a jam? Yep, they do a Distressed Debt Exchange (DDE). It's not uncommon for a firm to swap 100 unsecured senior notes with a high coupon for 50 secured bonds having half of the coupon. Does everyone know what Morgan Stanley said yesterday morning? Morgan Stanley sees a way forward for CHK. A path that involves selling non-core assets and multiple financing related measures. Do you think that MS is already talking with CHK about underwriting secured notes? Notes that could reduce their debt by billions? What assets could be pledged? How about the oil reserves of WildHorse? Stay tuned,
$CHK I became a stockholder in 2016 b4 the bk scare that sent SP to 1.50. Doug immediately had a press release stating bk was not an option, and several additional pr' s giving updates. The SP recovered and went over $8 even though crude only was $30 And ng was $3. In order to accomplish this, Doug had to give bond holders secured interest in chk's assets which didn't allow Doug to sell such assets. Since then, he has managed to get the liens off of those assets, which led me believe that a few core sales were coming. He sold Utica, but sold the farm to buy WH. Debt increased 2b more with the promise of FCF, huge production incresse in oil by end 2019 and great hedging . 2nd quarter er was over 1 month into 3rd quarter, Doug gave very rosy picture. No mention of poor realized ng prices which he knew and didn't report until 3rd quarter. Since all bonds now unsecured, imo, he will bk the company leaving assets intact coming out if bk. No PR's since er, and zero core asset sales.
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