Chesapeake Shares Plunge, McClendon Apologizes
NEW YORK - Shares of Chesapeake Energy Corp. are down 12 percent because of disappointing earnings and a new report of potential conflicts of interests involving its CEO.
Reuters says Aubrey McClendon ran a private hedge fund for at least four years that traded in contracts for oil and natural gas -- commodities that Chesapeake produces. The report suggests the hedge fund could have influenced McClendon's running of Chesapeake.
The revelation comes after the disclosure that McClendon had taken out personal loans to cover his investments in the company's wells. Some of those loans came from a group that was also planning to buy Chesapeake assets.
McClendon, who was stripped of his chairmanship following reports of the potential conflicts, apologized to shareholders Wednesday. He also disputed the veracity in some of those reports.