Chesapeake Energy Confirms it Hired Advisors to Explore Bankruptcy Options

Chesapeake Energy (NYSE: CHK) continues to knock at the door of bankruptcy. The financially troubled driller filed its quarterly report with the SEC today, which included a new "going concern" warning. The company also pulled its financial guidance and unveiled plans to prepay incentive compensation to management to keep them motivated in case it files for bankruptcy.  

Chesapeake Energy initially warned investors about its financial situation in November. At the time, the company wrote that "if continued depressed prices persist, combined with the scheduled reductions in the leverage ratio covenant, our ability to comply with the leverage ratio covenant during the next 12 months will be adversely affected, which raises substantial doubt about our ability to continue as a going concern."

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