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Chesapeake confirms favorable ruling in bond litigation

Chesapeake Energy (CHK) announced that the United States District Court for the Southern District of New York has ruled in Chesapeake’s favor, enabling the company to redeem its $1.3B of 6.775% Senior Notes due 2019 at par pursuant to the Special Early Redemption provision of the Notes. The company initiated its legal action on March 8, against the trustee for the Notes, The Bank of New York Mellon (BK). Chesapeake said will proceed with its Special Early Redemption of the Notes, with payment expected to be made on May 13, adding, “We are pleased that the Court has ruled in Chesapeake’s favor. We expect the refinancing of the Notes to save the Company more than $100M in interest payments.”