SunEdison filed with the U.S. Bankruptcy Court a motion for entry of an order (i) appointing an examiner and (ii) granting related relief.
The motion explains, “The nature of the Debtors’ business compels their involvement in a high volume of transactions. In addition, the Debtors have significantly expanded their business over the past several years. This rapid growth through transactions has led to inquiries by creditors regarding the propriety of the Debtors’ prepetition conduct. Similarly, the Audit Committee, advised by independent counsel and with the assistance of accounting and financial advisors, initiated an inquiry in late 2015 based on allegations made by former executives of the Company concerning the accuracy of the Company’s anticipated financial position previously disclosed to the Board….In addition, the Company received a grand jury subpoena with respect to a criminal investigation by the DOJ….the subpoena requests documents and communications regarding much of the prepetition conduct that would likely be the subject of inquiry during the Chapter 11 Cases, including the previously proposed Vivint transaction and the Audit Committee investigation. Because the Debtors are a development company, a long stay in chapter 11 would be untenable and not conducive to maximizing value. As a result, the Debtors, consistent with their fiduciary duties to maximize value, believe that the immediate appointment of an examiner to review prepetition activity that the examiner, in his or her discretion, finds appropriate is in the best interest of the Debtors’ estates and the stakeholders in the Chapter 11 Cases.”
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