Chesapeake loses round in courtroom bond battle
Posted : Thursday, 14 March 2013 04:44PM
NEW YORK (Reuters) - Chesapeake Energy Corp <CHK.N> on Thursday failed to win a court order allowing it to redeem $1.3 billion of notes early at a favorable price, a setback for the second-largest U.S. natural gas company as it tries to close a potential $4 billion cash shortfall this year.
The decision was announced by U.S. District Judge Paul Engelmayer at a hearing in Manhattan federal court.
Bond trustee Bank of New York Mellon Corp <BK.N> and a group of investors holding $250 million of the notes had opposed the proposed redemption, saying it would cause irreparable harm.
(Reporting by Bernard Vaughan and Jonathan Stempel in New York; Editing by Gary Hill)
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