NEW YORK, Sept 15 A federal appeals court on
Thursday rejected Chesapeake Energy Corp's effort to
avoid having to pay $438.7 million, including interest, to
investors in a bond dispute.
The 2nd U.S. Circuit Court of Appeals in Manhattan let stand
a July 2015 ruling requiring the payout, after the natural gas
company waited too long to tell bondholders of its plan to
redeem their debt six years early.
The appeals court agreed with bond trustee Bank of New York
Mellon Corp that holders of Chesapeake's 6.775 percent
notes maturing in 2019 were entitled to a special "make-whole"
price because of the early redemption.
(Reporting by Jonathan Stempel in New York; Editing by Chizu