Chesapeake CEO McClendon Got Wachovia Financing Just Three Weeks After Chesapeake

kate upton aubrey mcclendonAubrey McClendon with relative Kate Upton

Photo: The Lost Ogle

Bloomberg’s Zach Mider reports¬†Aubrey McClendon sold $88 million in personal well stakes to investment vehicles created by Wachovia Bank just three weeks after Chesapeake engaged in similar transactions worth $600 million.According to court documents obtained by Bloomberg, the same Wachovia bankers worked on both August 2008 transactions, known as volumetric production payments.

A potential conflict of interest arises if McClendon could have received better terms on his personal deal if he was giving the Wachovia vehicles better terms on the company’s deal.¬†

Those deals came after a separate January 2008 Wachovia transaction that yielded McClendon $44 million, the documents show.

“It’s in the interest of the other parties to give him a break on his transaction if they get a break on larger transactions with the company,” John Coffee, a corporate governance expert at Columbia Law School, told Bloomberg.

“There’s a concern,” especially if the transactions weren’t disclosed to shareholders, he said.

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