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SunEdison agrees to withdraw request for independent examiner

May 20, 2016 4:26 PM EDT

The headquarters of SunEdison is shown in Belmont, California April 6, 2016. REUTERS/Noah Berger

By Jessica DiNapoli

NEW YORK (Reuters) - SunEdison Inc has tentatively agreed to withdraw a request for an independent examiner for the renewable energy company's bankruptcy, its attorneys said in court on Friday, enabling its creditors to pursue their own investigation.

When it filed for bankruptcy in April, SunEdison had asked the judge to appoint an examiner to probe recent transactions, citing a U.S. Department of Justice subpoena related to financing activity and an investigation by the U.S. Securities and Exchange Commission.

Dropping the request, which was a bargaining chip in negotiations on SunEdison's $300 million bankruptcy loan, helps to resolve disputes over the loan and allow its Chapter 11 to move forward. Creditors and affiliated companies had filed objections to the loan.

SunEdison had planned on receiving approval for the loan on May 19.

Independent examiners' reports can change the course of bankruptcy cases and are often used in complex and potentially litigious bankruptcies like that of the operating unit of Caesars Entertainment Corp (NASDAQ: CZR).

(Reporting by Jessica DiNapoli; Editing by Richard Chang)



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