Chesapeake Energy Corp. was denied a request for an emergency court ruling allowing it to start redeeming $1.3 billion in notes early without automatically incurring the risk of paying about $400 million in interest sought by Bank of New York Mellon Corp.
Chesapeake had sought a ruling saying it could issue a notice to bondholders by tomorrow informing them it will redeem the 6.775 percent notes at par, or 100 cents on the dollar, six years before they mature. BNY Mellon, as trustee, said the company missed the deadline for such a redemption.
Chesapeake told the judge before the ruling was that they didn't plan to redeem the notes if they didn't get a favorable ruling.
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