Chesapeake Energy Debt Default a ‘Virtual Certainty,’ S&P Says

Chesapeake Energy Corp. is likely to announce a bankruptcy filing or a distressed capital restructuring in the next few months, despite having six months of liquidity, according to S&P Global Ratings.

• The ratings firm cut its credit rating to CC from CCC on the view that it will restructure ahead of debt payments due in July and August, according to a statement.
  • The company has $135m of interest due in July and a $208m maturity in August, S&P says.
• Chesapeake’s unsecured debt was cut to C on the expectation that those creditors will get a recovery of 10% to ...