Shares of Chesapeake Energy Corp. fell to a new 52-week low Wednesday before recovering at the end of the trading day following a report about $1.1 billion in personal loans taken by founder and CEO Aubrey McClendon.
Jittery investors shaved more than 5 percent from the value of Chesapeake shares, which closed at $18.06. More than 93 million shares changed hands, almost six times the average daily volume. At one point, the stock fell 10 percent to $17.17.
Reuters reported McClendon personally borrowed up to $1.1 billion against his interests in the company's well participation program, a perk available only to him as the company's founder. McClendon and Chesapeake told the wire service the company's board was aware of the transactions and the well participation program has been disclosed to investors.