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

Estate Planning Attorney with 6+ years of experience

USA-CA-Los Angeles

Los Angeles office is seeking an experienced estate planning attorney with 6+ years of experience. C...

Apply Now

Litigation Attorney with 2-6 years of experience

USA-OR-Portland

Portland office is seeking a litigation attorney with 2-6 years of experience.

Apply Now

Employment Attorney with 10-20 years of experience

USA-CA-Ontario

Ontario company is seeking a senior labor counsel with 10-20 years of experience. Candidate must hav...

Apply Now

Patent Litigation Attorney with 3-5 years of computer science experience

USA-IL-Chicago

Chicago office of our client seeks patent litigation attorney with 3-5 years of experience. The cand...

Apply Now

RELEVANT JOBS

Attorney

USA-CA-San Francisco

As an in-house legal counsel at Wix’s legal department, you will play a significant role in de...

Apply now

Attorney

USA-MO-Kansas City

Successful, expanding KC personal injury law firm seeks an attorney with 5+ years personal injury li...

Apply now

Attorney

USA-MD-Greenbelt

CRIMINAL LAW ATTORNEY - Houlon, Berman, Finci, Levenstein & Sandler, LLC, an established AV rat...

Apply now

Attorney

USA-MD-Greenbelt

FAMILY LAW ATTORNEY - Houlon, Berman, Finci, Levenstein & Sandler, LLC, an established AV rated...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top