Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Talen Energy Creditors Seek $500 Million Dividend Clawback (1)

Aug. 10, 2022, 7:41 PMUpdated: Aug. 10, 2022, 9:10 PM

Some creditors of power generation company Talen Energy Supply LLC have asked a bankruptcy court for authority to claw back about $500 million in dividend payments it made to shareholders and affiliates of its private equity owner, Riverstone Holdings LLC.

The committee representing Talen Energy’s unsecured creditors urged a Texas bankruptcy court Tuesday to let it sue to recover the $500 million in dividends issued in December 2017, arguing the extraction was a fraudulent transfer.

“By issuing the 2017 dividend, Riverstone caused Talen to engage in a transaction that rendered it insolvent,” the committee said in its filing.

Riverstone Holdings ...