SunEdison not happy with ТerraForm settlement views

Bankrupt US renewables developer SunEdison (OTCMKTS:SUNEQ) today issued a statement showing it is not entirely concordant with the view of its yieldco on their settlement discussions.

Last week, TerraForm Power Inc (NASDAQ:TERP), one of SunEdison’s two yieldcos, released a presentation with an overview of the two parties’ ongoing settlement discussions and of TERP’s proposal for a resolution of its outstanding claims against the parent company.

SunEdison said today that it is currently reviewing TERP's settlement proposal and other key information. The company pointed out that the presentation of the yieldco does not adequately account for SunEdison's defenses to TERP's claims, and that it fails to account at all for the substantial affirmative claims held by SunEdison against the yieldco.

“The premise set forth in the Presentation that SunEdison's interests in TERP be treated 'ratably' with TERP's other equity interests does not adequately account for SunEdison's contractual rights and interests and this issue will be addressed in the settlement negotiations,” SunEdison said in its statement.

SunEdison added that negotiations are continuing and that the three companies, including TerraForm Global Inc (NASDAQ:GLBL), are still exploring strategic alternatives. As previously announced, the sponsor and the yieldcos are seeking buyers for either SunEdison's stakes and other rights in the TerraForms or the full equity in the two firms.

TerraForm Power has claims against SunEdison estimated at over USD 1 billion (EUR 906m), while those of TerraForm Global surpass USD 2 billion. The yieldco says in its presentation that it prefers a settlement with its parent, but is ready to litigate issues to resolution in the absence of a deal.

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