Chesapeake Energy says failure to meet debt ratios could result in default under the company’s revolving credit facility and could cause a default on other debt.

The Oklahoman file

OKLAHOMA CITY — Chesapeake Energy Corp. stock opened down 15% Tuesday morning after the company warned that it might not be able to continue as a “going concern” if oil and natural gas prices remain low.

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The Oklahoma City-based oil and natural gas producer said in a regulatory filing with the U.S. Securities and Exchange Commission that it could have difficulty maintaining required debt ratios over the next year.

“If continued depressed prices persist, combined with the scheduled reductions in the leverage ratio covenant, our ability to comply with the leverage ratio covenant during the next 12 months will be adversely affected, which raises substantial doubt about our ability to continue as a going concern,” the company stated.

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