The two yieldcos of US renewables company SunEdison (OTCMKTS:SUNEQ) have begun settlement discussions with their bankrupt parent to resolve current claims consensually.
TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL) have now filed their initial proof of claim in SunEdison’s Chapter 11 bankruptcy case. The two companies also initiated settlement discussions with SunEdison, in part to facilitate the exploration of strategic alternatives for each of them.
Jack Stark, the chairman of the two yieldcos’ corporate governance and conflicts committee, said in a press statement that both firms have lost a large portion of their enterprise value due to SunEdison’s breach of its sponsorship and legal duties.
“We are prepared to enforce our rights and defenses in litigation if necessary, whether in bankruptcy court or elsewhere. However, we also recognize that resolving our relationship with SunEdison in the courts would be complicated and expensive. A settlement is overwhelmingly in the interests of both sides,” Stark commented.
TerraForm Power has claims against SunEdison estimated at over USD 1 billion (EUR 890m), while those of its sister company surpass USD 2 billion. The two yieldcos expect to supplement their initial proof of claims on or before October 7 with project-level claims.
(USD 1.0 = EUR 0.890)
Choose your newsletter by Renewables Now. Join for free!