Case Study: In Re Dynegy Holdings

Law360, New York (April 13, 2012, 7:03 PM EDT) -- On March 9, 2012, Susheel Kirpalani, the court-appointed examiner for Dynegy Holdings LLC (Dynegy), concluded that the debtor’s transfer of certain assets to its parent company, Dynegy Inc., prior to its bankruptcy filing may be recoverable as a fraudulent transfer. Kirpalani further determined that Dynegy’s board of directors breached its fiduciary duty in approving the asset transfer. Dynegy Inc. vigorously disputes the examiner’s findings.

Pursuant to § 1104 of the United States Bankruptcy Code, the court may appoint a bankruptcy examiner to investigate the debtor with...
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