CORRECTED-Chesapeake to redeem $1.3 bln notes at par
(Corrects redemption terms in paragraph 1)
March 15 (Reuters) - Chesapeake Energy Corp notified on Friday that it would try to redeem $1.3 billion of notes at par, a day after the company failed to win a court order that would have allowed the redemption.
Bond trustee Bank of New York Mellon Corp and a group of investors holding $250 million of the notes had said that Chesapeake should be subject to a "make-whole" provision on the 6.775 percent notes maturing in 2019.
The second-largest U.S. natural gas producer, which is looking to cover a potential $4 billion cash shortfall this year, had said the "make-whole" provision could cost it an extra $400 million.
"... The court stated multiple times that it is 'overwhelmingly' likely that the company's notice to redeem at par will not be determined by the court to be a notice to redeem under the 'make-whole' provision of the indenture, even if the notice to redeem at par is ultimately deemed untimely," the company said in a statement.
The case is Chesapeake Energy Corp. v. Bank of New York Mellon Trust Co NA, U.S. District Court, Southern District of New York, No. 13-01582. (Reporting by Swetha Gopinath in Bangalore)
- Malaysia air probe finds scant evidence of attack: sources |
- Malaysia probes passenger backgrounds for clues on missing flight |
- Confrontation in Ukraine as diplomacy stalls |
- N.Korea using sophisticated means to avoid U.N. sanctions - U.N. report
- Exclusive: Chinese raw materials also found on U.S. B-1 bomber, F-16 jets