Legal News

Chesapeake Wrangles Their Bonds From an Unwilling Bank of NY Mellon
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Addled company Chesapeake Energy Corp saw a glint of sunlight now that they’ve won the right to redeem $1.3 billion in notes early, though the note’s trustee, Bank of New York Mellon Corp, had tried to bar them, claiming they missed their deadline to do so. The notes would have matured in 2019, but Chesapeake did manage to make the March 15 deadline, and so U.S. District Judge Paul Engelmayer ruled in their favor.

“Chesapeake’s notice was effective, not defective,” he wrote in a 92-page decision, as reported by Reuters, and the bank’s interpretation to bar it was “tortured and incoherent,” and he concluded that the evidence “convincingly establishes a meeting of the minds among the negotiating parties as to the deadline. These parties intended and agreed that March 15, 2013, would serve as the deadline for Chesapeake to give notice.”

  
What
Where


Well that’s good, as it will save the company more than $100 million in interest payments. And it seems lately that Chesapeake can use a little help nowadays. Domenic Dell’Osso, Chesapeake’s chief financial officer, naturally said he was pleased with the decision. But the notes nevertheless fell 7 cents to 100.5 cents.

Chesapeake has cut their spending and decided to focus on drilling their best properties. They made $3.5 billion less than they needed to this year, and finished the first quarter with $13.4 billion in debt.

Perhaps the business about the notes can give them that extra push in the right direction; perhaps the rearrangement of their board by investors will help?

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The case is Chesapeake Energy Corp v. Bank of New York Mellon Trust Co, U.S. District Court, Southern District of New York, No. 13-01582.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Litigation Associate Attorney

USA-MD-Baltimore

Baltimore office of our client seeks mid-level litigation associate attorney with 3+ years of experi...

Apply Now

Junior to Mid-Level Labor Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks junior to mid-level labor associate attorney with preferabl...

Apply Now

Junior Employment Litigation Attorney

USA-CA-San Francisco

San Francisco office is seeking an attorney with 2-3 years of employment litigation, class action or...

Apply Now

Litigation and Transaction Associate Attorney

USA-OH-Mayfield Heights

Mayfield Heights office of our client seeks litigation and transaction associate attorney with 2-4 y...

Apply Now

RELEVANT JOBS

Legal Assistant

USA-FL-Jacksonville

Small law firm seeking legal assistant with 3+ years working experience as a legal assistant in the ...

Apply now

Staff Attorney

USA-CA-Los Angeles

Position: Staff Attorney Status: Full Time Location: Los Angeles Anticipated Annua...

Apply now

ASSISTANT DIRECTOR OF LEGAL RESOURCES (for Online Resources)

USA-DC-Washington

The National Association of College and University Attorneys (NACUA) seeks a full-time Assistant Dir...

Apply now

Legal Assistant / Paralegal

USA-GA-Columbus

Part-time case management, ordering medical records, setting up medical treatment, subrogating me...

Apply now

SEARCH IN ARCHIVE

To Top