Major Chesapeake Energy Investor Lawyers Up Ahead of Potential Bankruptcy

Chesapeake Energy (NYSE: CHK) could be moving closer to bankruptcy. According to reports, major investor Franklin Resources (NYSE: BEN) -- the company behind investing firm Franklin Templeton -- has hired a law firm to assist with negotiations on some of Chesapeake's debt the firm holds. 

This is the second shoe to drop in Chesapeake's path toward insolvency. The company signaled the increased likelihood that it would not be able to avoid bankruptcy in early march, when it hired a law firm and bankers with restructuring expertise.

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Source Fool.com