Chesapeake Energy (CHKAQ) has filed for Chapter 11 bankruptcy protection, an event that the energy world has been preparing for over several months. This event has been well telegraphed and expected, as was the news that the current Restructuring Support Agreement (“RSA”) states that there will be no recovery for Chesapeake Energy shareholders.
The up and down ride for the common is a topic for another day. Instead, discussion here is all about midstream contract rejection. It is an important concept for investors to understand when investing in this space, and really emphasizes