The energy shares continue to take a hit as the oil price still maintains at its low value this year. The lower oil price had sent two stocks in the billionaire philanthropist investor, Carl Icahn's portfolio plunging which is the Chesapeake Energy Corp. and Transocean Ltd.
According to the Market Watch, based on the company's value in the paper, Carl Icahn is currently losing $90 million for both shares as Chesapeake tumble down to be traded at 33.3 percent lower. While the Transocean shares shed 7.1 percent as lots of investors begin selling energy-related shares.
Based on the data compiled by the news agency, Icahn is currently the largest shareholder in Chesapeake with more than 73 million shares in hand giving him 11 percent stake in the company. The latest tumble mark as one of its most brutal single day sell-off forcing the shares to be traded at $2.04 in early trade compared to $3.06 on Friday.
Sell-off of Chesapeake begin as investors are worried that the company could be heading towards bankruptcy as it was reported that it had hired lawyers to restructure the company's debt as reported by Business Insider. However, the company denies the rumor that it is seeking bankruptcy protection.
The company was quoted by USA Today that it "currently has no plans to pursue bankruptcy and is aggressively seeking to maximize value for all shareholders." The company also added that they have been working together with the law firm Kirkland & Ellis since 2010 and the firm have been its legal advisor since then.
The statement also added that the lawyers hiring are part of its management plan as the firm "continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange."
With energy shares being the third biggest sector in Icahn's portfolio, he might be taking more paper loss as the company in the sectors continues to perform badly due to price pressure. Chesapeake's bonds on the other jumped higher and are currently trading at $0.50 to $0.24 with all 14 of the company's bond expected to expire between January 2017 to December 2038.
Carl Icahn or his spokesperson are not available for comment to confirm his stake in the company as the last time the stake was confirmed to the security commissioner was in September last year. Besides the two company, other shares performing badly in Icahn's portfolio includes Cheniere which fell 6.25 percent on Monday.
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