SunEdison files for Chapter 11, TerraForm and TerraForm Global not included

Written By: Stratton Report
April 21, 2016

sun edison

On April 21, SunEdison, Inc. announced that it had filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code. SunEdison’s publicly-traded yieldcos, TerraForm Power and TerraForm Global were not part of the filing.

SunEdison has secured commitments for new capital totaling up to $300 million in debtor-in-possession (DIP) financing from a consortium of first and second lien lenders.

According to the company, it intends to restructure its balance sheet and position itself for the future. .

Ahmad Chatila, SunEdison chief executive officer noted:

“Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues. The court process will allow us to right-size our balance sheet and reduce our debt, providing the opportunity to support the business going forward while focusing on our core strengths. It also will facilitate our continued work towards transforming the Company into a more streamlined and efficient operator, shedding non-core assets as well as taking other steps to help us get the most value out of our technological and intellectual property. As a result of this process, we expect that SunEdison will be in an even better position over the long term to utilize our capabilities in the renewable energy sector in service of our customers, business partners, and employees.”

Subject to Court approval, these financial resources will be made available to the Company to support its continuing business operations, minimize disruption to its worldwide projects and partnerships, and make necessary operational changes.

SunEdison has hired Rothschild Inc. and McKinsey Recovery & Transformation Services U.S., LLC as advisors in connection with the Company’s restructuring. Skadden, Arps, Slate, Meagher & Flom LLP is acting as its legal advisor.