Struggling with a huge debt burden on its balance sheet, SunEdison may hope for some relief after a hedge fund showed interest in reviving its stranded solar power assets in Hawaii.
New York-based hedge fund D.E. Shaw has reportedly expressed interest in 3 solar power projects owned by SunEdison in Hawaii. The projects have a combined installed capacity of 148 MW and had power purchase agreements with Hawaiian Electric Co. until they were terminated in February this year.
Hawaiian Electric Co. put the brakes on power purchase agreements due to the precarious financial condition of SunEdison.
D.E. Shaw buying out the power plants is far from a done deal. Officials at Hawaiian Electric Co. are not convinced of this supposed rescue. D.E. Shaw is a creditor to SunEdison and the Hawaiian utility believes that the proposed transaction may merely be aimed at the hedge fund settling its debt; and in the event of SunEdison’s bankruptcy, these projects could be embroiled in a financial struggle between SunEdison and its creditors.
The US-based solar power projects developer has been facing considerable strain on its balance sheet for months after it embarked on an expansive acquisition spree.
Among the latest troubled deals planned by SunEdison was the failed acquisition of Vivint Solar in the US. Last year, the company also had to sell 425 MW of solar power capacity in India to its yieldco TerraForm Global in order to retire some debt from the balance sheet.
The company is planning to sell equity stake in one of the largest solar power projects that it had secured through competitive auction in India.