UPDATE - TerraForm Global dismisses default warning from bondholders
Author: Simon Cunningham. License: Creative Commons, Attribution 2.0 Generic
US renewables yieldco TerraForm Global Inc (NASDAQ:GLBL) insists that the notice of default given by its bondholders last week is "untimely and therefore ineffective".
Holders of the 9.75% senior notes due in 2022 that were issued by subsidiary TerraForm Global Operating LLC warned on Wednesday that the company could face an “event of default” if it fails to file its already delayed 2015 annual report within 90 days.
The renewables yieldco of struggling developer SunEdison (OTCMKTS:SUNEQ) has sent a response to the letter from the bondholders on May 13, dismissing that warning, it said in a regulatory filing.
Both of SunEdison’s yieldcos have delayed filing their annual reports just like their debt-laden parent company did. SunEdison previously explained the delay with some “material weaknesses" found in its internal controls over financial reporting. The three firms share the same accounting systems.