Judge Rips Chesapeake Bondholders In $1.3B Refinance Row

Law360, New York (March 12, 2013, 9:31 PM EDT) -- A federal judge on Tuesday criticized investors in Chesapeake Energy Corp. bonds who oppose its plan to refinance $1.3 billion in debt, suggesting that they intend to unjustly enrich themselves at the natural gas company's expense.

U.S. District Judge Paul Engelmayer found a position taken by bondholders “troubling,” he said at an emergency hearing in Manhattan federal court. The judge heard arguments on whether Chesapeake can force bondholders to sell their bonds back to the company, part of a bid to call back $1.3 billion in...
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