Chesapeake Energy Corporation (NYSE:CHK)’s board of directors continues its investigation into CEO Aubrey McClendon’s financial dealings with companies that do business with Chesapeake. Although Chesapeake’s largest shareholder wanted the probe wrapped up in weeks, it has now been going on for eight months. It isn’t expected to wrap up until mid-January. Also some shareholders have expressed concerns about a possible conflict of interest inside the investigation itself.
Chesapeake Energy Corporation (NYSE:CHK) CEO Aubrey McClendon’s financial dealings are still under investigation by the company’s board of directors, in spite of a request from the company’s largest shareholder to wrap it up in weeks rather than months. The probe began in April, and it doesn’t look like it will wrap up for at least a couple more weeks.
McClendon borrowed hundreds of millions of dollars from firms that do business with Chesapeake Energy Corporation (NYSE:CHK). The Wall Street Journal cites an anonymous source close to the investigation who said it could last into the middle of January but probably not result in the board pushing out McClendon, who stepped down as chairman of the board but remains the company’s CEO and still serves on the board.
The Journal reported that some shareholders are concerned about a conflict of interest in the investigation, which is being headed up by V. Burns Hargis, who supervised McClendon’s financial dealings in relationship to Chesapeake Energy Corporation (NYSE:CHK). Shareholders are especially concerned by the fact that the probe is taking so long to complete.
Thus far spokespeople for McClendon, Hargis or Southeastern Asset Management Inc., Chesapeake Energy’s largest shareholder, have not commented on the investigation.
Shares of Chesapeake Energy Corporation (NYSE:CHK) are down more than 25 percent this year. They continued to decline on Friday, losing another 2 percent. A look ahead at next year for the corporation does not look bright either.
As we reported last week, the company continues to have financial problems, even failing to pays its bills to Otis Eastern, one of the company’s major contractors.