Chesapeake Energy Loses Appeal in $438.7 mln Bond Dispute

 

The 2nd U.S. Circuit Court of Appeals in Manhattan let stand a July 2015 ruling requiring the payout, after the natural gas company waited too long to tell bondholders of its plan to redeem their debt six years early.

 

The appeals court agreed with bond trustee Bank of New York Mellon Corp that holders of Chesapeake's 6.775 percent notes maturing in 2019 were entitled to a special "make-whole" price because of the early redemption.