Leaf seeks USD 126m from Invenergy after TerraForm deal

Leaf Clean Energy Co (LON:LEAF) is seeking USD 126 million (EUR 115.4m) from its investee, Invenergy Wind LLC, in relation to the sale of wind power assets to TerraForm Power (NASDAQ:TERP).

The renewable energy investor said Tuesday it had filed a complaint against the US firm in the Delaware Court of Chancery in the USA. The complaint alleges that Invenergy was required to either secure Leaf's consent to the wind disposal prior to the deal’s finalisation, or make a payment to Leaf upon the closing of the sale. It has done neither.

Leaf Clean Energy holds 2.3% of Invenergy’s issued equity after in September it received regulatory approval to convert certain notes into equity.

On December 16 it was announced that Invenergy had concluded the sale of 832 MW of wind to TerraForm Power, which is the first yieldco vehicle formed by SunEdison (NYSE:SUNE). The sale of a further 98 MW of assets is expected to be completed early next year.

Leaf Clean Energy calculates that the payment it should receive from Invenergy as regards to the completed transaction amounts to USD 126 million. Invenergy, however, has informed Leaf that it does not believe that Leaf is entitled to the payment, so the investor expects Invenergy to contest the allegations of the complaint.

(USD 1 = EUR 0.916)

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