Maryland Heights, Mo.: SunEdison, Inc. announced April 21 that it and certain of its domestic and international subsidiaries had filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Southern District of New York.
SunEdison’s publicly-traded yieldcos, TerraForm Power (NASDAQ: TERP) and TerraForm Global (NASDAQ: GLBL), are not part of the filing.
SunEdison said it 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. Subject to Court approval, the company says those 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.
The new financing will support day-to-day operations during the reorganization, including:
• Proceeding with work on ongoing projects, both in the U.S. and elsewhere;
• Paying wages and benefits for employees;
• Continuing to provide services to customers;
• Paying vendors and suppliers in the ordinary course for goods and services provided on or after the date of the chapter 11 filing; and
• Complying with all regulatory obligations.
In a May 2 analysis posted on the website of Gowling WLG, lawyers Thomas Gertner, Alex MacFarlane and Thomas Timmins comment that "the Chapter 11 Proceedings are likely to trigger asset sales of world-wide interest to SunEdison competitors and renewable energy investors. As of this writing, it is not clear how the Chapter 11 Proceedings will affect the Canadian SunEdison assets and operations." Visit gowlingwlg.com for their full commentary.