Cheaspeake Energy Corp. ordered to pay $380M in bond dispute
Ponca City Now - July 12, 2015 9:39 am
(Information in the following story is from: The Oklahoman, http://newsok.com)
OKLAHOMA CITY (AP) – A federal judge in New York is ordering Chesapeake Energy Corporation to pay nearly $380 million to bondholders after the Oklahoma City-based company redeemed bonds earlier than expected in 2013.
U.S. District Judge Paul A. Engelmayer ruled Friday that bondholders should be paid the "make-whole" price for Chesapeake’s early redemption of the bonds. The bonds were issued in 2012 for $1.3 billion and were due in 2019.
The Oklahoman reports the case stemmed from how the parties interpreted a deadline for giving notice that the bonds would be redeemed early.
Chesapeake said it had until March 15th, 2013, but attorneys for The Bank of New York Mellon Trust Company said the deadline was in mid-February that year.