Debt-laden US renewables developer SunEdison Inc (NYSE:SUNE) has filed for bankruptcy protection and has secured commitments for up to USD 300 million (EUR 265.5m) in debtor-in-possession (DIP) financing.
SunEdison has filed voluntary petitions for reorganisation under chapter 11 of the US Bankruptcy Code, it announced today, stressing that the filing does not concern its two yieldcos, TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL).
The company has agreed DIP financing with a consortium of first and second lien lenders that will support day-to-day operations during the reorganisation and ongoing projects worldwide. The funding agreement needs to be approved by the court.
"The court process will allow us to right-size our balance sheet and reduce our debt, providing the opportunity to support the business going forward while focusing on our core strengths,” said CEO Ahmad Chatila. SunEdison’s head went on to say that the company will offload non-core assets in a drive to establish “a more streamlined and efficient operator”.
Rothschild Inc and McKinsey Recovery & Transformation Services US LLC are consulting SunEdison in connection with the reorganisation process, while Skadden, Arps, Slate, Meagher & Flom LLP serves as its legal advisor.
(USD 1.0 = EUR 0.885)
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