Judge Allows Sunedison To Draw $90 Million 'Lifeline'

Solar power company Sunedison Inc SUNEQ, which filed for bankruptcy Thursday, has won a court permission Friday to draw part of a $300 million bankruptcy lifeline from its existing lenders, according to a report on Dow Jones.

Judge Stuart Bernstein of the U.S. Bankruptcy Court in Manhattan said the "company could borrow $90 million of the loan and signed off on SunEdison's other requests to ease its transition into bankruptcy while it works out a plan to cut its multibillion debt load," the report said.

"The company needs liquidity, that's first and foremost," the report added quoting James Mazza, a lawyer for SunEdison.

In a separate report, Wall Street Journal said a bankruptcy judge denied the company's "unusual request" to launch an independent probe into its dramatic reversal of fortunes.

According to the report, in May, SunEdison plans to seek approval of an examiner to draw down the remaining $210 million of the bankruptcy loan.

Shares of SunEdison rose 9.93 percent to $0.226.