Investment firm defends loans to Chesapeake CEO McClendon

EIG Global Energy Partners apparently does not regret its decision to loan as much as $875 million to Chesapeake Energy Corp. CEO Aubrey McClendon.

McClendon secured the loans to fund his share of Chesapeake’s drilling costs under the Founder Well Participation Program, which has allowed him to buy a 2.5 percent stake in all company wells since 1993.

The Chesapeake co-founder has been criticized by some analysts for creating a potential conflict of interest because EIG also bought $500 million in preferred shares of Chesapeake subsidiary CHK Utica in November. The company has denied any conflict of interest in the deals.

EIG Chief Executive R. Blair Thomas sent a letter to some investors this week defending the firm’s loans to McClendon, a source told Reuters.

Thomas blamed the media for “making something out of nothing” in reporting on the McClendon loans.

EIG could not be reached for comment late Thursday afternoon.