The US Bankruptcy Court for the Southern District of New York has approved the settlement agreement between SunEdison Inc (OTCMKTS:SUNEQ) and its two yieldcos, TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL).
The clearance by the bankruptcy court is one of the conditions to the completion of the two yieldcos’ acquisition by Canada’s Brookfield Asset Management Inc (TSE:BAM.A). The transactions, involving a controlling stake in TerraForm Power and a full takeover of TerraForm Global, are still subject to closing conditions such as shareholder approval, regulatory clearance and the resolution of certain litigation against TerraForm Global.
“We look forward to completing the remaining conditions to the closing of the merger,” said Peter Blackmore, chairman and interim CEO of both yieldcos.
In March, Canadian asset manager Brookfield announced it had agreed to become TerraForm Power’s sponsor and controlling shareholder with a 51% stake in exchange for a payment, in cash or stock, of USD 11.46 (EUR 10.18) per Class A share. Also, it agreed to take over TerraForm Global for USD 5.10 per Class A share in cash, or a total of USD 787 million plus the assumption of some USD 455 million in net debt.
At the time, the two renewable power plant operators formally reached a settlement agreements with SunEdison in connection with the latter’s Chapter 11 bankruptcy case, thus resolving the legal relationship with their parent.
(USD 1.0 = EUR 0.888)
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