SunEdison filed with the U.S. Bankruptcy Court a second motion for entry of an order subordinating and reclassifying claims based on the purchase or sale of securities of the Debtors or their affiliates.
The motion explains, “Consistent with section 510(b) of the Bankruptcy Code and the express terms of the Debtors’ confirmed Plan…the 510(b) Claims should be subordinated to all other creditor claims and reclassified as Class 6 ‘Other Subordinated Claims’ because such claims purport to be based on the purchase or sale of securities of the Debtors or an affiliate of the Debtors or a claim for reimbursement or contribution in connection with such claims. Ordinarily, a party seeking to subordinate a claim must request such relief by way commencing an adversary proceeding, except where, as here, the confirmed Plan expressly provides for the subordination of section 510(b) claims and separately classifies such claims for treatment purposes.”
In addition, “Accordingly, the Debtors file this Motion in an abundance of caution to give express effect to the terms and conditions of the Plan.”
The Court scheduled a December 21, 2017 hearing to consider the motion, with objections due by December 14, 2017.
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