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TerraForm consents to third-party sale of SunEdison subsidiary assets
By Caroline Salls
Pittsburgh, Sept. 27 – Some subsidiaries of SunEdison, Inc. reached an agreement under which TerraForm Global, Inc. consented to the sale of the SunEdison’s subsidiaries’ assets to a third-party buyer, according to a TerraForm news release.
TerraForm said the transaction is being conducted in connection with SunEdison’s bankruptcy process and includes the 425 megawatt India portfolio of solar energy projects for which TerraForm made a prepayment to SunEdison in the fourth quarter of 2015.
The sale also includes the SunEdison units’ Bora Bora project in India and some assets in Uruguay that were previously committed to be transferred to TerraForm by SunEdison but were not transferred before SunEdison’s bankruptcy filing.
TerraForm said it agreed not to pursue claims against a third-party buyer that are in any way related to the assets included in the sale, but it retained all of its claims against SunEdison and its affiliates.
As a condition to TerraForm’s consent to the sale transaction, TerraForm and some SunEdison subsidiaries that own the assets entered into a proceeds sharing arrangement under which TerraForm is entitled to receive a portion of the cash proceeds received by the SunEdison parties.
According to the release, the amount of cash proceeds TerraForm will receive from this arrangement depends on various factors and is limited. TerraForm said it does not expect the proceeds to exceed $10 million.
Based in Maryland Heights, Mo., SunEdison operates renewable power plants. It filed for bankruptcy on April 21 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 16-10992. TerraForm is a Bethesda, Md., owner and operator of clean energy power plants.
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