EXPOSED: Yet Another Colossal Mistake on Behalf of Aubrey McClendon
They could make a word-of-the-day calendar of Chesapeake Energy (NYSE:CHK) exposés. The latest reveal (in a chain of many) has former chairman Aubrey McClendon actually negotiating another loan of $450 million in the weeks before his ouster as chairman, according to a Reuters report.
Apparently the loan was being negotiated through EIG Global Energy Partners, which was simultaneously working to arrange a $1.25 billion financing for Chesapeake itself.
The revelation of this new loan brings up the tally of McClendon’s controversial personal loans, taken against the collateral of oil well stakes, to $1.33 billion, on which he still owes $1.1 billion. The oil well stakes were granted him by Chesapeake as a perk that has since been withdrawn by the company, and will run only until 2014.
EIG CEO R. Blair Thomas has been at pains to soothe his investors, saying in a letter that it is “simply untrue” that there was any conflict of interest in its loans to McClendon and dealings with Chesapeake. He also defended his loans to McClendon, clarifying that, “The crux of the story as it relates to EIG seems to be that we got too good a deal for our investors.”
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