According to an announcement in the New York court, bankrupt solar power producer SunEdison allowed its unsecured creditors to investigate its bankruptcy amid an agreement the company reached with its junior creditors on its finance package.
SunEdison, carrying debt of $16bn at the time of filing for bankruptcy. The troubled company hasn’t yet filed audited financial statements for 2015.
It appears that during court proceedings, creditor’s evaluation of SunEdison’s financial affairs revealed little information regarding SunEdison’s subsidiaries that were not involved in the bankruptcy.
In exchange for the right to investigate, SunEdison’s unsecured creditors agreed to withdraw opposition to the company’s $300m bankruptcy financing package.
SunEdison’s yieldcos or its most significant creditors, TerraForm Power Inc. and TerraForm Global Inc., reached an agreement designed to make sure the company that once owned them would be able to meet its obligations to them.
The committee investigation would replace a probe SunEdison had earlier requested, one that creditors declared to be too limited in scope and budget.
In addition, SunEdison’s bankruptcy financers, which are also the company’s senior lenders, agreed to free up for junior creditors up to $50m of insurance coverage available under the company’s officers and directors liability insurance coverage.