BNY Mellon Drops Interest Bid In $1.3B Chesapeake Bond Row

Law360, New York (April 1, 2013, 5:41 PM EDT) -- Bank of New York Mellon will not attempt to force Chesapeake Energy Corp. to make a massive interest payment to bondholders as part of its plan to refinance $1.3 billion in debt, the bank said Monday, dropping a central claim in a lawsuit between the two.

The decision by the bank, announced in a Monday letter to U.S. District Judge Paul Engelmayer, significantly narrows its dispute with Chesapeake. The natural gas company touched off the row in March with a plan to take advantage of cheap...
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