Dynegy, examiner finds constructive fraudulent transfer

In a somewhat expected move, the independent examiner for the NY bankruptcy court, Susheel Kripalani, opined that the sale of the coal plants (CoalCo) for $1.25 bln was equivalent to the transfer of hundreds of millions of dollars away from creditors at DHI to shareholders at Dynegy Inc. My first read of the filing indicates its positive for unsecured bonds, negative for the equity and neutral for the Roseton & Danskammer leaseholders.  Please email me if you are interested in discussing the ramifications.

Advertisements

One thought on “Dynegy, examiner finds constructive fraudulent transfer

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s