US renewables yieldco TerraForm Power (NASDAQ:TERP), whose parent SunEdison Inc (NYSE:SUNE) filed for bankruptcy protection on Thursday, has finally resolved its legal dispute with the stockholders of Latin America Power Holding BV (LAP).
SunEdison agreed to buy LAP in May 2015 but failed to secure the needed funds to close the transaction and cancelled it instead. This prompted LAP’s stockholders to launch legal proceedings against the US company and its yieldco. Subsequently, they reached a settlement agreement only to see SunEdison fail to make a required payment and force the LAP investors to recommenced the arbitration against all parties.
Today, TerraForm Power said in regulatory filing it has entered into a new settlement and mutual release agreement with LAP’s shareholders, including BTG Pactual Brazil Infrastructure Fund II LP, P2 Brasil Private Infrastructure Fund II LP, P2 Fund II LAP Co-Invest LP, P2 II LAP Co-Invest UK LP and GMR Holding BV. The yieldco has made a one-time payment of USD 10 million (EUR 8.8m) to LAP under the new deal.
TerraForm Power noted that the fresh settlement does not impact any claims that the LAP shareholders or the yieldco may have against SunEdison.
(USD 1.0 = EUR 0.884)
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