Continental Resources CEO Harold Hamm pledged about 25 percent of his shares in the company Tuesday as collateral for a personal loan, according to a Securities and Exchange Committee filing.
Hamm put up 68.7 million shares worth about $2.4 billion to serve as collateral for the loan, Reuters said.
The collateral amount represents 18.5 percent of Oklahoma-based Continental’s total outstanding shares.
Hamm currently holds 68 percent of the company’s shares.
The SEC filing did not specify the purpose or the size of the loan.
Under the terms of the loan agreement Hamm could be required to pledge more shares if the stock price fails to meet the “minimum value requirements.”
The filing did not provide further details about the loan or the minimum value requirements.
According to Hamm’s divorce attorney, the 68 year old Continental Resources founder recently took out a personal loan to help fund his divorce settlement with ex-wife and former Continental executive Sue Ann Arnall.
Last week, Arnall accepted a nearly $1 billion alimony check after a judge refused to change the terms of the couple’s divorce agreement.
The payment is in addition to a $25 million payment Arnall won in 2012.