Bank of New York Mellon Corp. asked a judge to reject Chesapeake Energy Corp.'s bid for an emergency order allowing it to redeem more than $1.3 billion in notes early without paying new interest, saving about $400 million.
Investors holding $250 million in debt echoed the bank's request as they sought to intervene. A hearing is set for later today in the suit, in which Chesapeake seeks a ruling that it can still meet a March 15 deadline to redeem the 6.775 percent notes at par, and not the higher "make whole" price.
"Chesapeake, having missed the deadline to redeem the notes at par, now demands an advisory opinion from the court, seeking to guarantee the idiosyncratic treatment of a future redemption notice which has not yet been made," BNY Mellon, the indenture trustee for the notes, said in a filing today in Manhattan federal court opposing the request.
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