TerraForm Global, a clean-energy holding company currently embroiled in a $2 billion settlement dispute with its parent company SunEdison, yesterday agreed to stand aside and allow the bankrupt firm to pursue the sale of its Indian and Uruguayan solar assets.
The yieldco has consented to the sale of certain SunEdison subsidiaries’ assets to a third-party buyer as part of SunEdison’s bankruptcy process. This includes a 425 MW India portfolio of energy projects that had been earmarked for transferal to TerraForm Global prior to SunEdison’s bankruptcy.
In the fourth quarter of 2015 TerraForm Global made a prepayment for this portfolio; a half-deal that highlights how difficult the firm is finding it to unravel its intricately wound business dealings with SunEdison.
However, in acceding to this sale – which also includes SunEdison’s Bora Bora solar farm in India and certain assets in Uruguay – some threads have been loosened in the ongoing fight for TerraForm Global to extricate itself from SunEdison’s financial mess.
The firm did also state that it will not seek to pursue claims against any third-party buyer related to these assets, but will “retain all of its claims against SunEdison and its affiliated persons”.
Further, by consenting to a Third Party Sale Transaction, TerraForm Global has ensured that it will receive a portion of the cash proceeds raised by this sale of SunEdison’s assets. The company expects the sum it is set to receive to be no more than $10 million.
Last weekend, TerraForm Global and fellow SunEdison yieldco TerraForm Power begun settlement discussions with SunEdison over more than $3 billion in claims pertaining to damages to each firms’ enterprise value “as a result of SunEdison’s catastrophic breach of its sponsorship and legal duties”.