On Sunday, September 25, 2016, each of TerraForm Power, Inc. and TerraForm Global, Inc. issued a press release purportedly describing allegations made by the Yieldcos in proofs of claims filed by them last Friday in SunEdison, Inc.’s and its related affiliates’ bankruptcy cases (collectively, “SunEdison”). While SunEdison disagrees with many of the statements, claims and allegations made by the Yieldcos in their press releases, SunEdison confirms that settlement discussions with the Yieldcos have commenced, and adds that such settlement discussions relate both to alleged claims asserted by the Yieldcos against SunEdison, as well as meaningful claims that the SunEdison estate is reviewing and may assert against the Yieldcos.
Like any similar situation with any other creditor in their Chapter 11 cases, SunEdison will actively pursue the dismissal or settlement of proofs of claims in the bankruptcy cases – although no date has been established yet in the bankruptcy cases for objecting to proofs of claims. In addition, as the Yieldcos disclosed in their press releases, SunEdison and the Yieldcos are engaged in a collaborative sale process to sell either SunEdison’s ownership interests and other rights in the Yieldcos or the entirety of the equity in the Yieldcos. Any transaction resulting from the sale process will require the approval and consent of SunEdison and approval of the bankruptcy court. SunEdison will evaluate proposed transactions based on the value they deliver to SunEdison’s bankruptcy estate. In connection with the sale process, and as has been disclosed to bidders interested in participating in the sale process, it is anticipated that there will ultimately be a resolution of (i) the dispute regarding the claims alleged by the Yieldcos in their proofs of claims and (ii) any claims that SunEdison holds against the Yieldcos.
John Dubel, SunEdison’s Chief Executive Officer, said, in relation to the above issues, “Our Chapter 11 process has been long and complex and we are now at a critical stage as it relates to the Yieldcos. We take to heart Jack Stark’s comments that a settlement of disputes between the Yieldcos and SunEdison is overwhelmingly in the interests of both sides, and we will proceed with our settlement discussions while at the same time moving forward with the sale process.”
The foregoing reflects SunEdison’s position only. No assurance can be made as to the outcome of any litigation or settlement discussions.
