A huge spike in the Chesapeake Energy Corporation CHK insurance on senior 5-year bond default cost index this week indicates that investors are growing increasingly pessimistic about the company's ability to avoid default. Shares of the company's common stock fell 33 percent to open the week after reports surfaced that the company is now working with restructuring attorneys Kirkland & Ellis. A mid-day press release from Chesapeake assured investors that the company has been working with the firm since 2010, but the reassurance did little to calm market fears. The spike in the 5-year bond default index is the largest since Chesapeake asked bond holders to accept longer-dated debt instruments back in early December.