Latest news update from Etrade
It won't let me paste the whole article, but here is a piece that caught my eye
SunEdison's bankruptcy case will kick off Friday, when the embattled company will ask for the appointment of an examiner, according to a court calendar entry. Lawyers for the company couldn't immediately be reached Thursday to discuss the unusual move. Typically, creditors ask a bankruptcy judge to appoint an examiner to conduct an independent probe of a company's business dealings.
SunEdison, which is under investigation by the Securities and Exchange Commission and Justice Department and sued over its dealings with related companies, is likely to be the target of creditor probes in chapter 11.
By asking for an examiner at the outset of its case, SunEdison appears to be borrowing a page from the playbook of the bankrupt operating unit of Caesars Entertainment Corp., which last year asked for an examiner to probe allegations of insider-led looting of the company. The Caesars probe didn't end well for the company, however, as the examiner found creditors had potentially been wronged by prebankruptcy dealings.
SunEdison said it has secured commitments for new capital of up to $300 million in debtor-in-possession financing from a consortium of first- and second-lien lenders. Court papers say the chapter 11 financing may include a "roll-up" of up to $350 million of the existing second-lien loans and second-lien convertible notes. In a "roll-up" deal, prebankruptcy loans are elevated to the prime status of bankruptcy financing, which makes them easier to collect, as a condition of extending new money to a troubled company.
