SunEdison, Inc., the largest global renewable energy development company, its holding company SunEdison Holdings Corporation, and TerraForm Power, Inc., an owner and operator of clean energy power plants, today announced that they have entered into a settlement agreement with the shareholders of Latin America Power Holding, BV, that resolves all of the disputes among the parties regarding the termination of the acquisition of Latin America Power by SunEdison.
The parties resolved the case on mutually acceptable terms. They agreed that the arbitration proceeding between them will be terminated upon final payment, the related action filed in New York state court will be dismissed without prejudice and the temporary restraining order issued in that action will be vacated immediately. The parties have agreed that the acquisition of Latin America Power by SunEdison will not be completed.
The financial terms of the settlement include total payment of $28.5 million to be made by SunEdison, Inc. and/or SunEdison Holdings Corporation. The settlement imposes no payment obligations on TerraForm Power. None of the parties has admitted to any wrongdoing or liability with respect to the claims asserted in the arbitration and New York state court action, and the parties have granted each other full releases subject to the fulfillment of SunEdison’s payment obligations under the settlement agreement.
SunEdison stock was up 21% this morning on the news of this settlement. But this is not necessarily a vote of confidence in SunEdison. The company’s stock had crashed just yesterday when they announced their earnings report would be delayed due to an internal investigation.
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.