* Chesapeake sought to redeem $1.3 bln notes early
* Bondholders, trustee BNY Mellon opposed redemption
NEW YORK, March 14 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.