Chesapeake says not planning bankruptcy as shares halted down 50.7%

Chesapeake Energy Corp. sought to reassure investors Monday with a short statement clarifying that it is not planning to pursue bankruptcy. The statement came as the stock was halted down 50.7% at $1.51. The company said Kirkland & Ellis LLP is advising it on ways to strengthen its balance sheet, but added that the firm has acted as counsel since 2010 and is not a new hire. "Chesapeake currently has no plans to pursue bankruptcy and is aggressively seeking to maximize value for all shareholders," said the statement. The second-largest producer of natural gas and 12th largest producer of oil and natural gas liquids in the U.S. has been battered by the falling oil price. Its shares have fallen 92% in the last 12 months, while the S&P 500 is down 10.5%.

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