Chesapeake Energy seeks court judgment to confirm redemption notice for 6.775% notes

By Jennifer Chiou

New York, March 8 - Chesapeake Energy Corp. announced that it is seeking a declaratory judgment in the U.S. District Court for the Southern District of New York for the redemption of its 6.775% senior notes due 2019 at par.

The defendant in the action initiated by Chesapeake is the Bank of New York Mellon Trust Corp., NA, the indenture trustee for the notes.

According to a news release, the company is requesting that the court confirm that the redemption notice issued on or before March 15 will be timely and effective to redeem the notes at par. Payment would be made 60 days after the notice under the special early redemption provision of the notes.

Chesapeake stated that it is further requesting a prompt preliminary order from the court that a redemption notice at par cannot be construed to be a notice to redeem under the make-whole provision of the indenture if the court does not determine that the redemption notice is timely.

If the court does not issue the preliminary order or the requested declaratory judgment, the notes will remain outstanding.

The issuer is an Oklahoma City-based producer of natural gas.

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