Seeking The Appointment Of Bankruptcy Examiners

Law360, New York (February 24, 2012, 1:59 PM EST) -- In late 2011, bondholders in the bankruptcy case of power company Dynegy Holdings LLC moved for the appointment of a bankruptcy examiner to investigate certain transactions that occurred immediately prior to the filing of Dynegy’s bankruptcy petition. The transactions at issue involve the alleged transfer of millions of dollars in assets to Dynegy’s parent company (a nondebtor) approximately two months prior to the bankruptcy filing.

The bondholders, who agreed to a proposed restructuring prior to the bankruptcy but will likely receive nothing following the reorganization, have...
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