SunEdison says negotiating DIP financing

Troubled US renewables developer SunEdison Inc (NYSE:SUNE) confirmed in a regulatory filing on Friday that it is holding talks in connection with proposed debtor-in-possession financing transactions.

SunEdison filed publicly company-related information as agreed with its first and second lien lenders on March 17. It said that talks on the potential financing transactions are still ongoing and there is no certainty that they will lead to an agreement.

Last month, Debtwire cited sources in the know as saying that SunEdison was negotiating debtor-in-possession financing with holders of its second lien loans. A week later, one of SunEdison’s two yieldcos, TerraForm Global (NASDAQ:GLBL), warned there is a significant risk that its parent will soon seek bankruptcy protection.

In a newly-filed presentation to creditors, the debt-laden company says it needs a USD-310-million (EUR 275m) loan to maximise value and continue core business operations. It notes it has reduced its workforce by 40% since October 2015 and expects the level of layoffs to reach 50%. SunEdison estimates its first-quarter cash usage at USD 779 million.

(USD 1.0 = EUR 0.887)

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