Dive Summary:
- Aubrey K. McClendon, Chesapeake Energy's co-founder and chief executive, will retire on April 1 amid scrutiny over mixing personal finances with the company's; after the Securities and Exchange Commission opened an investigation in McLendon's finances, a shareholder-led revolt ousted him as chairman of the board.
- The company has been forced to unload $12 billion in resources over the last year in an attempt to pay off its debts, which stemmed from McClendon's aggressive borrowing that, at one point, funded an expansion spree.
- The company has found no improper conduct from McClendon thus far but McClendon agreed to step down regardless; he will continue to serve as chief executive until a successor is appointed.
From the article:
Pressure on Mr. McClendon began last April after news reports revealed that he had obtained personal loans using minority stakes in company-owned wells as collateral. Reuters reported that he had personally borrowed more than $1 billion from EIG Global Energy Partners, a firm that also invested in Chesapeake, raising questions over conflict of interest.
Mr. McClendon was a larger-than-life figure in an industry filled with them. His dealings stretched across the globe as he negotiated partnerships with the Norwegian oil company Statoil, China’s CNOOC and France’s Total, shepherding the foreign oil giants into joint ventures in shale fields around the country. ...