Published on December 5th, 2016 | by Joshua S Hill0
SunEdison Foresees Future Successful Reorganization, Shareholders Seek OEC
December 5th, 2016 by Joshua S Hill
Following several months of intense negotiations and restructuring efforts such as the sale of many of its existing assets, the once-powerful SunEdison has apparently claimed that “there is a strong likelihood” that the company “will successfully reorganise.”
I’ve been covering SunEdison news for several years, and have been covering SunEdison’s financial difficulties since they first arose and climaxed with the company’s filing for Chapter 11 bankruptcy protection back in April. Last week I was contacted via Twitter by SunEdison shareholder Rafael Hernandez, who alerted me to recent filings which showed SunEdison was confident of being able to successfully reorganize. Specifically, in Docket Filing 1664, SunEdison explained that,
“…the Debtors are on the path to a successful reorganisation. They have engaged in the sale of a number of their assets and continue to work towards a global settlement that ultimately will be the bedrock of a successful reorganisation. On that basis, there is a strong likelihood that the Debtors will successfully reorganise.”
Over the past few months, we have reported on several various sales of assets by SunEdison, including Ecotricity’s acquisition of SunEdison’s UK solar business; Greenko’s acquisition of SunEdison’s India assets for $315 million; as well as a variety of smaller sales and potential acquisitions. Of particular interest is the latest acquisition, which was finalized late-November, when NRG Energy announced the close of its acquisition of a large chunk of SunEdison’s solar and wind energy portfolio.
On a separate note, Rafael Hernandez filed a Request to the US Trustee to appoint an Official Equity Committee on behalf of the shareholders. An Official Equity Committee is “a small group of the largest shareholders in a company formed to represent all other shareholders during a company’s bankruptcy trials.” In his letter to the US Trustee, Hernandez explains that SunEdison’s planned reorganization “will likely be complex and heavily negotiated by all parties” and that “adequate representation for shareholders will be critical for shareholder distribution and it is unrealistic to expect anyone except a shareholder committee to fight for shareholder distribution.”
All Docket Filings can be viewed here.
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.