BNY Mellon Contests Chesapeake’s Early Redemption of Notes

Bank and other investors ask court to reject Chesapeake’s bid for an emergency order.

Bank of New York Mellon Corp. asked a judge to reject Chesapeake Energy Corp.’s bid for an emergency order allowing it to redeem more than $1.3 billion in notes early without paying new interest, saving about $400 million.

Investors holding $250 million in debt echoed the bank’s request as they sought to intervene. A hearing is set for later today in the suit, in which Chesapeake seeks a ruling that it can still meet a March 15 deadline to redeem the 6.775 percent notes at par, and not the higher “make whole” price.

Investor Group

They include Archer Capital Management LP, Ares Management LLC, Aurelius Capital Management LP, Carlson Capital LP, Cetus Capital LLC, Latigo Partners LLC, Monarch Alternative Capital LP, P. Schoenfeld Asset Management LP, River Birch Capital LLC and Taconic Capital Advisors LP.

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