Chesapeake Energy, the second-largest natural gas producer in the United States, plunged as much as 50 percent on Monday after multiple reports that it had hired restructuring attorneys.
Chesapeake shares were down $1.01 at $2.05, having been halted at least eight times in morning trading. Despite these reports, the energy company said in a statement that it has no plans to pursue bankruptcy, and Chesapeake is aggressively seeking to maximize value for all shareholders.
Chesapeake, which has more than $10 billion in debt, has been hit by a steep fall in both oil and gas prices. Reuters reported that the company's bonds maturing next month plunged 20 points, to a level of 75 cents on the dollar, on the news.