A group of Chesapeake (CHK +0.7%) bondholders challenge the company's authority to redeem $1.3B...

|About: Chesapeake Energy Corporation (CHK)|By:, SA News Editor

A group of Chesapeake (CHK +0.7%) bondholders challenge the company's authority to redeem $1.3B of notes, saying the plan is improper and would shortchange them. They say that in seeking a preliminary injunction against bond trustee BNY Mellon, CHK is trying to renege on its contractual obligations by seeking authority to buy back the notes at par rather than at a premium.