Dynegy Asset Shuffle Called 'Fraudulent'

Wall Street Journal ^ | 9 march 2012 | JOSEPH CHECKLER and MIKE SPECTOR

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A bankruptcy-court examiner said Dynegy Inc.'s board breached its fiduciary duty with an asset reshuffling that benefited billionaire Carl Icahn and other shareholders at the expense of creditors.

A report by the examiner released Friday threw the Houston-based power provider's debt-restructuring plans for its main subsidiary into doubt, a setback for Mr. Icahn.

The restructuring, executed before Dynegy's subsidiary filed for bankruptcy protection in November, was a "fraudulent transfer" that moved "hundreds of millions of dollars away from Dynegy's creditors in favor of its stockholders," said the examiner, Susheel Kirpalani, in a 173-page report. He suggested Mr. Icahn's representatives no ...

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Hmmm. The creditors are left holding the bag and the stockholders get paid.

[clee1]

Fraudulent???? Where’s the indictment?

[ptsal]

Send old Carl to jail....should have been there years ago....