Chesapeake loses round in courtroom bond battle
* Chesapeake sought to redeem $1.3 bln notes early
* Bondholders, trustee BNY Mellon opposed redemption
NEW YORK, March 14 (Reuters) - Chesapeake Energy Corp on Thursday failed to win a court order allowing it to redeem $1.3 billion of notes early at a favorable price, a setback for the second-largest U.S. natural gas company as it tries to close a potential $4 billion cash shortfall this year.
The decision was announced by U.S. District Judge Paul Engelmayer at a hearing in Manhattan federal court.
Bond trustee Bank of New York Mellon Corp and a group of investors holding $250 million of the notes had opposed the proposed redemption, saying it would cause irreparable harm.