TerraForm committee prepared to discuss SunEdison claim settlement

By Caroline Salls

Pittsburgh, Sept. 19 – TerraForm Global, Inc. notified SunEdison, Inc. that its corporate governance and conflicts committee is prepared to enter into discussions with SunEdison and/or its stakeholders to settle intercompany claims and defenses, according to a TerraForm news release.

“We believe it is in the best interests of TerraForm Global and SunEdison for there to be a prompt settlement of all intercompany claims and defenses to facilitate the strategic review process,” committee chairman Jack Stark said in the release.

“We are committed to negotiate actively with SunEdison to resolve intercompany matters consensually on arm's-length terms as soon as possible, although we stand ready to enforce our rights in litigation if necessary.”

TerraForm said it has initiated a process to explore and evaluate potential strategic alternatives to maximize stockholder value, including a merger or sale of its entire business.

The company said it entered into confidentiality arrangements with SunEdison and representatives for some of its stakeholders to allow TerraForm Power to share confidential information about strategic alternatives and other matters.

Because SunEdison is operating under Chapter 11 bankruptcy protection, TerraForm said many decisions made by SunEdison, including how to vote its shares in TerraForm Power to approve a merger or sale of substantially all of TerraForm Power’s assets, may also require the approval of the U.S. Bankruptcy Court for the Southern District of New York.

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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