Just weeks before Chairman of Chesapeake Energy, Aubrey McClendon was removed from his post of chairmanship, he managed to get $450 million loan. The loan which was previously not disclosed, was arranged made by EIG Global Energy Partners that was simultaneously arranging a $1.25 billion financing for Chesapeake.
The new loan takes Aubrey McClendon’s total financing from EIG to $1.33 billion since 2010. It was secured through his own life-insurance policy as well as Aubrey McClendon’s personal pledges in wells which have not yet been drilled by Chesapeake.
The recent revelations about Aubrey McClendon’s dealings came to light after a report by Reuters on April 18 which found out that Aubrey McClendon had borrowed excessively against his interests in wells of Chesapeake.
Inquiries were conducted by the Internal Revenue Service as well as the Securities and Exchange Commission. It also prompted Chesapeake’s board to remove Aubrey McClendon on May 1 as chairman and an early end to a perk. Since 2009 Aubrey McClendon has obtained loans worth $1.55 billion from EIG and also other lenders. Analysts were worried about dual part of EIG being a financier to Chesapeake as well as its CEO.Previous Post » Earnings Season Near End – Stock Report