Apollo, Elliott Sued by Deutsche Bank in SunEdison Loan Feud

Apollo, Elliott Sued by Deutsche Bank in SunEdison Loan Feud

Deutsche Bank Securities, which helped arrange the credit facility in 2016 and was sued two years later for allegedly duping the creditors into the loan, said investors that also include Highbridge Capital Management LLC and Cerberus Capital Management LP are falsely claiming they relied on the German company’s analysis of SunEdison before making the loan.

Apollo Global Management Inc., Elliott Investment Management LP and different investors in upset corporate debt were sued by a unit of Deutsche Bank AG for allegedly making bogus cases about its role in a $725 million loan to SunEdison Inc. before the energy organization filed for bankruptcy. The claim is the most recent legitimate spat over the loan. A California judge in July 2020 denied Deutsche Bank’s motion to excuse a suit recorded in 2018 by an entity formed to address the lenders, SESL Recovery LLC. That case is set for trial in July.

In a complaint filed Monday in New York state court in Manhattan, Deutsche Bank said it “did not independently generate or communicate its own analyses and had no role in advising the lenders or otherwise helping them assess their potential investment.”

The bank added that the lenders made a “calculated bet” on a company that was under intense financial pressure in January 2016, and it simply “did not pay off,” according to the complaint. SunEdison filed for bankruptcy on April 21, 2016.

Deutsche Bank “now faces hundreds of millions of dollars in alleged liability and has already incurred millions of dollars in foreseeable fees and costs to defend itself,” it said in the new complaint.

SESL attorney Andrew K. Glenn declined to immediately comment on the lawsuit when reached by phone on Wednesday.

SESL’s earlier suit alleged Deutsche Bank goaded second-lien lenders by lying about SunEdison’s financial health to reap fees. The bank also sought to protect its $1 billion of loans, issued with its affiliates, to SunEdison that it “knew were in jeopardy,” according to the lenders’ earlier complaint.

The lenders, who are seeking hundreds of millions of dollars in damages, also allege that Deutsche Bank and SunEdison misled them into believing the funds would be used for funding new development, knowing that the money would instead be used to repay a critical vendor and keep the business afloat.

SunEdison emerged from bankruptcy in late 2017 following over a year of Chapter 11 proceedings in which the company recouped over $2.3 billion through gross asset sales. The case is Deutsche Bank Securities Inc. v. 683 Capital Partners LP, 650164/2022, Supreme Court of the State of New York (Manhattan).

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
How the pandemic affected access to healthcare for people with disabilities |  Chicago news
How the pandemic affected access to healthcare for people with disabilities | Chicago news
Gallegos said people with disabilities shouldn’t be looked at as a condition or a disease, but as a patient population. He said people with disabilities are ...
Santa Clara County supervisors consider mandatory mental health treatment for people with serious illnesses |  News
Rise in COVID-19 Cases Drives Gov. Pritzker to Send Rapid Response Teams to Hospitals | Chicago news
Many health care workers have quit, exhausted by a pandemic that is on the verge of entering its third year, while others are in isolation because they ...
Solana Price Predictions: Why an Analyst Thinks SOL Cryptocurrency Could Be Next Seen
Solana Price Predictions: Why an Analyst Thinks SOL Cryptocurrency Could Be Next Seen
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions ...
South Africa welcomes the end of the EU Covid red registry;  mourns the loss of billions of rand
South Africa welcomes the end of the EU Covid red registry; mourns the loss of billions of rand
While these moves are welcomed, it comes after the peak of the tourist season and in the wake of over R1 billion lost in cancelled bookings following ...
PUBG is currently available for free on all platforms
PUBG is currently available for free on all platforms
With a more slowed-down tactical pace, it offers an alternative to more action-packed and gung-ho battle royale games like Call of Duty: Warzone and Apex ...
Maersk reports 43% increase in containerized rail export cargo in 2021
Maersk reports 43% increase in containerized rail export cargo in 2021
Besides delivering speed, the services also provided hinterland connectivity and predictability to customers’ supply chains in the uncertainty of the ...
Cramer’s Mad Money Recap 1/12: Tesla, Ford, GM
Cramer’s Mad Money Recap 1/12: Tesla, Ford, GM
Get more trading strategies and investing insights from the contributors on Real Money. Cramer told viewers they should have a list of stocks they want to buy, ...
New York City energy jumps to four-year high as cold sets in
New York City energy jumps to four-year high as cold sets in
Most power used on a given day is secured in the day-ahead market. Demand was recently coming in about 5% above those forecasts. So spot prices are also ...
the surface Laptop SE is easily repairable, according to a Microsoft teardown video
the surface Laptop SE is easily repairable, according to a Microsoft teardown video
The Surface Laptop SE is not a high-end piece of hardware, and it doesn’t look like one. Notebooks with slim designs, metal bodies, and ultra-high-resolution ...
Mercedes targets double-digit growth;  plans to introduce products in 2022
Mercedes targets double-digit growth; plans to introduce products in 2022
The carmaker has also lined up S-Class Maybach for launch in March. Mercedes-Benz India on Wednesday said it hopes to log in twofold digit deals development ...
Show next
We will be happy to hear your thoughts

      Leave a reply

      Compsmag - Latest News In Tech and Business
      Logo