You've read plenty on this site in the past few weeks about our friend Aubrey McClendon and the financial 3-card monty he's been playing with Chesapeake Energy. Now, it's really starting to hit the fan. From the AP:
Chesapeake Energy CEO forced to sell company stock
Aubrey K. McClendon, chief executive of Chesapeake Energy Corp., has sold the bulk of his stock in the company over the past three days in order to meet margin loan calls, the company said Friday.
The company did not disclose the size of the stock sale, pending the filing of documents with the Securities and Exchange Commission.
"I am very disappointed to have been required to sell substantially all of my shares of Chesapeake," McClendon said in a news release. "These involuntary and unexpected sales were precipitated by the extraordinary circumstances of the worldwide financial crisis."
Extraordinary is just about hitting the nail on the ol' head, I would venture. Remember how I wrote earlier that McClendon's decrease in net worth was on paper only, that the dip (or plummet) in share price did not necessarily mean he was losing money?
Yeah, well, that went out the window over the past 3 days. McClendon bought millions of shares this summer at $55 a pop, and just got finished selling them for about $17 each.
I don't speak fluent Oklahoman, but does the phrase "hurtin' for certain" apply here?
[Thanks to Alan for the tip.]