is seekingroughly $1 billion in damages tied to its failed merger with , a move that looks tooverride bankruptcy protection afforded to SunEdison during its restructuring.
Vivint'slawyers filed the motion in the U.S. Bankruptcy Court Southern District of NewYork on July 7, requesting that the federal court allow Vivint to continue itslawsuit against SunEdison in the Delaware Court of Chancery. Suchpermission would effectively bypass the automatic stay, or injunction oncollecting debts, afforded to companies undergoing Chapter 11 bankruptcy.
Indoing so, Vivint is seeking to establish a judgment in its litigation relatedto SunEdison's "willful breach" of contract to finalize its failedmerger in the Delaware court, which the company contends is equal to roughly $1billion in damages.
Ifsuch a judgment is ultimately determined by the Delaware court, according tothe filing, Vivint says it would then return to the court with that figure sothat it may be considered in the reorganization. "Vivintseeks to lift the stay only to obtain a judgment that it would then use in thisCourt to establish the amount of its claim," the filing said.
The$1 billion claim makes Vivint the largest unsecured creditor in the bankruptcyproceeding, the filing said, a figure large enough to sway the reorganization.
Vivintindicated that if the court will not grant its motion to seek a judgment inDelaware it would move its proceedings tied to the merger breach to the federalcourt. "Alternatively, Vivint would not be opposed to havingthis [federal] Court preside over an expedited trial to establish the exactamount of Vivint's claim," Vivint said.
Thehearing on the motion is scheduled for Aug. 11 in the Southern District court.Vivint is being represented by Wilson Sonsini Goodrich & Rosati.