SunEdison’s bankruptcy is back in the news. The massive renewable energy company filed for Chapter 11 bankruptcy back in April of this year, and has been struggling to reorganize ever since. There are two new reports this morning concerning SunEdison’s potential sale of assets and yieldco subsidiaries.
According to a report in the Economic Times of India, Greenko Energy Holdings, a renewable energy company based in Hyderabad, India, has agreed to acquire 390 megawatts of solar projects and 48 megawatts of wind farms from SunEdison for $315 million. The deal will be financed with $280 million in debt and equity value of $30 million.
Greenko, will also receive a project pipeline of 800 megawatts. The company has agreed to to take on additional debt and equity financing to build the projects.
The Wall Street Journal is reporting that SundEdison’s yieldco subsidiaries, TerraForm Global and TerraForm Power are exploring their strategic options which may include the sale of their entire businesses.
Yieldcos are publicly traded companies that are formed to own operating assets that produce predictable cash flows. In this case the assets in question are solar and wind farms that have entered into long-term delivery contracts with customers.
Both companies indicated that they are considering replacing SunEdison with a new sponsor or assuming SunEdison’s existing sponsorship agreements. This restructuring might ultimately require the approval of the Bankruptcy Court before moving forward.
SunEdison announced last month that it would stop making interest payments on behalf of the two yieldcos as part of their Chapter 11 proceedings. TerraForm Global and TerraForm power and contesting this decision.
Both the two yieldcos face some other challenges. They have to file their 2015 annual earnings reports or their 2016 first quarter reports as a result of the SunEdison bankruptcy filing. They did, however report preliminary results for the second quarter of 2016 which ended June 30th.
About Tracey Smith Tracey is an accountant and entrepreneur with a passion for nature. This passion is what spurred her interest in renewable energy, and the rest is history as they say. Tracey is a principal in Energy Think Group, the publisher of Solar Thermal Magazine and Tek-Think. She is also the principal at Women's Financial Help Desk. She spends her free time in the outdoors with her horses and dogs. She loves to travel.