On Sunday, September 25, 2016, each of TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL) issued a press release purportedly describing allegations made by the Yieldcos in proofs of claims filed by them last Friday in Sunedison Inc’s (OTCMKTS:SUNEQ) and its related affiliates’ bankruptcy cases.
While SunEdison disagrees with many of the statements, claims and allegations made by the Yieldcos in their press releases, SunEdison confirms that settlement discussions with the Yieldcos have commenced, and adds that such settlement discussions relate both to alleged claims asserted by the Yieldcos against SunEdison, as well as meaningful claims that theSunEdison estate is reviewing and may assert against the Yieldcos.
Like any similar situation with any other creditor in their Chapter 11 cases, SunEdison will actively pursue the dismissal or settlement of proofs of claims in the bankruptcy cases – although no date has been established yet in the bankruptcy cases for objecting to proofs of claims.
In addition, as the Yieldcos disclosed in their press releases, SunEdison and the Yieldcos are engaged in a collaborative sale process to sell either SunEdison’s ownership interests and other rights in the Yieldcos or the entirety of the equity in the Yieldcos. Any transaction resulting from the sale process will require the approval and consent of SunEdison and approval of the bankruptcy court. SunEdison will evaluate proposed transactions based on the value they deliver to SunEdison’s bankruptcy estate. In connection with the sale process, and as has been disclosed to bidders interested in participating in the sale process, it is anticipated that there will ultimately be a resolution of (i) the dispute regarding the claims alleged by the Yieldcos in their proofs of claims and (ii) any claims that SunEdison holds against the Yieldcos.
John Dubel, SunEdison’s Chief Executive Officer, said, in relation to the above issues, “Our Chapter 11 process has been long and complex and we are now at a critical stage as it relates to the Yieldcos. We take to heart Jack Stark’s comments that a settlement of disputes between the Yieldcos and SunEdison is overwhelmingly in the interests of both sides, and we will proceed with our settlement discussions while at the same time moving forward with the sale process.”
The foregoing reflects SunEdison’s position only. No assurance can be made as to the outcome of any litigation or settlement discussions. (Original Source)
Shares of SunEdison closed today at $0.0495, down $0.0008 or -1.59%. SUNEQ has a 1-year high of $10.07 and a 1-year low of $0.04. The stock’s 50-day moving average is $0.05 and its 200-day moving average is $0.24.
SunEdison, Inc. is a renewable energy development company, which engages in the business of semiconductor and solar technology. It develops, manufactures, and sells silicon wafers and photovoltaic energy solutions. Its operates through the following segments: Renewable Energy Development, TerraForm Power Inc., and TerraForm Global Inc. The Renewable Energy Development segment provides renewable energy services that integrate the design, installation, financing, monitoring, operations, and maintenance portions of the renewable energy industry segment. The TerraForm Power Inc. segment own and controls clean power generation assets. The TerraForm Global Inc. segment owns and operates clean power generation assets that sell electricity through long-term power purchase agreement to utility and commercial customers based in specified emerging market countries located in Asia, Africa, Latin America, and the Middle East.