(Reuters) - Chesapeake Energy Corp
Bond trustee Bank of New York Mellon Corp
The second-largest U.S. natural gas producer, which is looking to cover a potential $4 billion cash shortfall this year, had said the "make-whole" provision could cost it an extra $400 million.
"... The court stated multiple times that it is 'overwhelmingly' likely that the company's notice to redeem at par will not be determined by the court to be a notice to redeem under the 'make-whole' provision of the indenture, even if the notice to redeem at par is ultimately deemed untimely," the company said in a statement.
The case is Chesapeake Energy Corp. v. Bank of New York Mellon Trust Co NA, U.S. District Court, Southern District of New York, No. 13-01582.
(This story is corrected with redemption terms in paragraph 1)
(Reporting by Swetha Gopinath in Bangalore)