| WASHINGTON, April 24
WASHINGTON, April 24 The U.S. Supreme Court on
Monday rejected a bid by natural gas company Chesapeake Energy
Corp to avoid having to pay $438.7 million to investors
in a bonds dispute.
The justices refused to hear the Oklahoma City-based
company's appeal of a September 2016 ruling by the New
York-based 2nd U.S. Circuit Court of Appeals in favor of
The appeals court said the payout was justified after
Chesapeake Energy waited too long to tell bondholders of its
plan to redeem $1.3 billion of their debt six years early.
The three-judge panel agreed with bond trustee Bank of New
York Mellon Corp that hedge funds and other holders of
Chesapeake's 6.775 percent notes maturing in 2019 were
contractually entitled to a special "make-whole" price because
of the early redemption.
The appeals court upheld a 2015 ruling by U.S. District
Judge Paul Engelmayer in Manhattan.
(Reporting by Lawrence Hurley; Additional reporting by Jonathan
Stempel; Editing by Will Dunham)