A federal appeals court has rejected Chesapeake Energy’s bid to avoid having to pay $438.7million to investors in a bond dispute.
The decision was made earlier today.
The 2nd US Circuit Court of Appeals had let stand a July 2015 ruling which required the payout after the company allegedly waited too long to tell bondholders of its plan to redeem their debt six years earlier.
The appeals court agreed with bond trustee Bank of New York Mellon Corp that holders of Chesapeak’s 6.755% notes maturing in 2019 were entitled to a specila “make-whole” price because of the early redemption.