SunEdison emerges from bankruptcy as Brookfield closes on TerraForm Global

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A mere two years ago, SunEdison was at the top of its game. The solar developer that pioneered the power purchase agreement was snatching up companies left and right, including the acquisition of First Wind which briefly made it the world’s largest renewable energy developer.

In its long list of firsts, SunEdison had also developed the world’s first solar-yieldco, TerraForm Power, blazing a trail followed by NextEra Energy, NRG and later SunPower and First Solar. To top it off, the developer formed a second yieldco, TerraForm Global, to hold its international solar and wind projects.

But in the Spring of 2016, it all fell apart. After months of investor concern regarding SunEdison’s buying spree, a lawsuit by hedge fund manager David Tepper stopped a loan that would have enabled the acquisition of Vivint Solar, and the house of cards began to fall, ending in a messy bankruptcy that threatened to drown its two yieldcos.

Last week this story came to an end, with SunEdison emerging from bankruptcy as a shadow of its former glory. SunEdison will now function as a private company, without $2.3 billion in former assets sold off by restructuring agent John S. Dubel.

This includes both TerraForm Power and TerraForm Global. It is unclear what role the new SunEdison will have, with a press release mentioning a “significantly smaller footprint” and that it will continue to focus on monetizing its remaining assets.

The news is better for the two yieldcos. On December 28 TerraForm Global became the second of the two to finalize its acquisition by Canadian asset manager Brookfield, nine months after the initial merger agreement. TerraForm Global has also quit the NASDAQ Exchange, with stock holders compensated at $5.10 per share.

Brookfield closed on TerraForm Power in early October, which was followed by a frenzy of refinancing. Unlike TerraForm Global, TerraForm Power is still traded on the NASDAQ.

A press statement by TerraForm Global states that the company’s 919 MW of wind and solar assets in developing nations will be integrated into Brookfield’s global portfolio.

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