Insights & Publications
Diversity & Inclusion
© 2022 Debevoise & Plimpton LLP
Chesapeake Energy Loses $1.3 Billion Bond Redemption Appeal: Will a Handful of Missing Words Cost $400 Million?
26 November 2014
View Client Update
The conditional bond redemption feature that we introduced to the market can save a company from significant economic risk.
An understanding between a company and the financing arranger about the agreement’s meaning will not necessarily prevail, if it has not been communicated to investors.
Under New York law, if a court finds contract language unambiguous, it will ignore external evidence of the parties' intent, however clear. A court may find wording unambiguous even if its meaning is disputed and subject to multiple interpretations.
The description of material terms in a bond disclosure document should be drafted and negotiated with a similar level of care as the indenture that governs the bonds.
Borrowers, arrangers and their counsel should take special care to make the terms of financing agreements clear. Overlooking a few words can make hundreds of millions of dollars' worth of difference.
David A. Brittenham
Jeffrey E. Ross
Ramya S. Tiller
UK Modern Slavery Act Transparency Statement
Debevoise Login (2)
Debevoise Women's Review