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 ...