Adani India interested in SunEdison’s Indian assets

Adani Green Energy, a subsidiary of the Adani Group, was looking to acquire renewable energy projects owned by SunEdison India, subsidiary of the bankrupt parentco SunEdison.

Soon after a bankruptcy filing by the US-based developer, several Indian companies were reported to have expressed interest in acquiring SunEdison India’s projects.

SunEdison India already operates 700 MW of renewable energy capacity, mostly in the form of solar power projects, with an additional 1.7 GW under development. The company sold 425 MW of solar projects in India to its yieldco TerraForm Global for $231m in 2015.

The company also owns wind energy projects, some of which it acquired last year from Fersa Energías Renovables.

Around 1,000 MW of solar capacity is being developed or secured by SunEdison in competitive auctions, which includes the 500 MW project SunEdison won in the Andhra Pradesh auction.

The project was among the most economical projects in India, in terms of tariff.

Apart from Adani Green Energy, Tata Power Renewable Energy is also believed to have expressed interest in acquiring SunEdison’s assets.

Source: CleanTechnica

India’s Adani Green Energy may tie up with SunEdison for its $2bn solar foray

India-based conglomerate Adani Group’s renewable energy subsidiary Adani Green Energy, was considering a technical partnership with bankrupt U.S. firm SunEdison Inc., as part of the its $2bn foray into the solar manufacturing business.

If successful, Adani Green Energy’s integrated solar manufacturing plant would be the first of its kind in the country. It has created a special purpose vehicle, Mundra Solar PV Ltd, to handle the project

India currently has 14 manufacturers of solar cells producing 1212 MW of cells annually and 81 makers of solar modules who produce a total of 5620 MW. However, there were practically no manufacturers of polysilicon or polysilicon wafers, all of which is imported, due to high investments required.

In the first phase, work on which has already begun, a solar cell and module manufacturing plant was being set up by the company at a cost of INR 20,000m.

With a capacity of 1200 MW, the project is expected to be complete by December 2016, and would double the country’s cell manufacturing capacity.

In the second phase, Adani plans to expand capacity to 2000 MW and start making silicon wafers. It is in the third phase that polysilicon manufacturing would begin.

However, the company expects an offtake guarantee from the government prior to manufacturing these wafers.

For the third phase, a technical tie up would be necessary for which Adani might rope in a JV partner.

Source: Economic Times

SunEdison’s junior creditors to conduct bankruptcy probe

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.

Source: WSJ


SunEdison bankruptcy loan hearing moved to Friday

SunEdison’s scheduled hearing on Thursday in a New York bankruptcy court on its $300m bankruptcy loan was postponed until Friday.

Some of SunEdison’s creditors and its so-called yieldcos, TerraForm Global Inc. and TerraForm Power Inc., had objected in court papers to the debtor-in-possession loan, which includes features that may help a group of lenders recoup their initial investment.

According to SunEdison’s attorney Jay Goffman, a deal on the DIP loan was expected by Friday.

SunEdison filed for bankruptcy in April after its ambitious growth plan proved unsustainable. It received approval from a judge last month to tap some of the DIP loan.

Source: Reuters

SunEdison’s yieldcos given more time to file delayed reports

SunEdison Inc.’s yieldco’s TerraForm Power Inc. and TerraForm Global arranged for more time to file their financial reports for 2015, thus helping them avoid a potential technical default on their credit facilities. The agreement was approved by lenders on Tuesday.

TerraForm Power Inc. has until 28 May 2016, to file its annual financial results whereas TerraForm Global Inc. could get an extension period of almost 10 months, in exchange for reducing the size of its own revolving credit line to $350m from $485m.

As per an SEC-filing, TerraForm Power would also delay the release of its 1Q’16 report as it had identified “material weaknesses in internal controls over financial reporting,” including the valuation of costs of projects acquired from SunEdison and processing accounts payable and general and administrative expenses.

The yieldcos delayed releasing their annual reports partly due to the assistance needed from their bankrupt parent SunEdison, which also hasn’t filed its reports. Parent company SunEdison had sought bankruptcy protection in April 2016.

TerraForm Global did not provide a specific new deadline in the filing but it had until either 30 March 2017, or 10 business days before “failure to deliver such financial statements would constitute an event of default” for another debt, its senior notes due 2022, whichever came first.

Source: Bloomberg

SunEdison sells its energy projects in Chile

Bankrupt solar developer SunEdison Inc. reached an agreement to sell two of its energy projects in Chile to power company for an undisclosed amount.

SunEdison also signed a 15-year power-supply contract with Colbun, to supply the Chilean energy company with 200 gigawatt hours per year. SunEdison stated that it planned to construct a 100 megawatt solar plant in Chile to supply the energy.

Separately, India-based firm Mahindra Susten has filed a lawsuit against SunEdison’s subsidiaries for their failure to pay Mahindra its dues of INR 46m on a project in India.

Source: Business Standard, Reuters

SunEdison to access $300m DIP loan whilst undergoing Ch-11 restructuring

SunEdison Inc., which filed for bankruptcy in April 2016, received interim approval from a U.S. Bankruptcy court to access upto $300m debtor-in-possession financing loan whilst it pursues Chapter-11 restructuring.

Judge Stuart Bernstein of the U.S. Bankruptcy Court for the Southern District of New York refrained from making a decision on the company’s request for an independent examiner, by stating that other creditor groups might want to have a say on these matters.

The court also approved the continuation of payment of employee wages and benefits, work on ongoing projects and certain vendor payments.

Separately, the company’s yieldcos, TerraForm Power Inc and TerraForm Global Inc, on Monday named Peter Blackmore as their interim chief executive, effective 21 April 2016. These yieldco’s are not part of the bankruptcy.

Source: St. Louis Bizjournal, Reuters

SunEdison files for Ch-11 bankruptcy

SunEdison Inc. filed for Chapter-11 bankruptcy protection, a move that has been expected by investors for weeks.

Trading in the company’s stock was halted at $0.34 a share prior to the filing.

The company secured $300m debtor-in-possession facility whilst it undergoes restructuring.

SunEdison’s yieldcos, TerraForm Power and TerraForm Global were not part of the bankruptcy filing.

TerraForm Power’s stock surged 4.1% in morning trade and TerraForm Global shares climbed 3%.

Source: MarketWatch

Shareholder cuts stake in SunEdison

In an SEC filing, SunEdison’s shareholder David Einhorn’s Greenlight Capital announced that it no longer held more than 5% stake in the company. 

Greenlight’s stake in the troubled renewable-energy company is now 1.6%, down from 4% in January.

SunEdison teethers on the brink of bankruptcy. Previously, the CEO of its subsidiary was forced to resign amid shareholder pressure.

Mr. Einhorn’s own stake in SunEdison had reduced by more than half to 2.8% from 6.8%, according to filings.

The troubled company’s stock began its rapid decline soon after its plans to acquire Vivint Solar for $2.2bn. The planned merger eventually failed and SunEdison is being sued by Vivint.

Previously, in January 2016, SunEdison named a representative for Greenlight Capital to its eight-person board.

Source:  TheStreet

CEO of SunEdison’s subsidiaries resigns amid pressure from billionaire David Tepper

CEO Brian Wuebbels of SunEdison’s subsidiaries TerraForm Power and TerraForm Global resigned on Wednesday evening, paving way for the board of directors to run both the firms on an interim basis.

The change of management adds to the woes of the company which is on the brink of filing for bankruptcy.

The resignation of the CEO reflects on a previously failed attempt by the company to acquire Vivint Inc., but could have been hastened by renewed legal threats from billionaire shareholder David Tepper of hedge fund Appaloosa Management, who holds a 9.5% stake in subsidiary TerraForm Power.

Tepper had sued SunEdison during its takeover of Vivint in January which also saw opposition from the board of TerraForm. Although Tepper was unable to block the acquisition in a Delaware court, the deal eventually did not go through owing to SunEdison’s financial situation

Source: Forbes