Solar and wind power operator SunEdison files for bankruptcy protection
by Canadian Manufacturing.com Staff
SunEdison develops, finances, installs, owns and operates renewable power plants
MARYLAND HEIGHTS, Mo.—Renewable energy power plant operator SunEdison, Inc., and some of its domestic and international subsidiaries, have filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code.
SunEdison’s publicly-traded yieldcos, TerraForm Power and TerraForm Global, are not currently part of the filing. SunEdison’s Canadian offices are located in Toronto.
“Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues,” said Ahmad Chatila, SunEdison chief executive officer.
“The court process will allow us to right-size our balance sheet and reduce our debt, providing the opportunity to support the business going forward while focusing on our core strengths. It also will facilitate our continued work towards transforming the company into a more streamlined and efficient operator, shedding non-core assets as well as taking other steps to help us get the most value out of our technological and intellectual property,” said Chatila.
SunEdison said in a press release 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, these 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
• Complying with all regulatory obligations
The company has hired Rothschild Inc. and McKinsey Recovery & Transformation Services U.S., LLC as advisors in the restructuring. Skadden, Arps, Slate, Meagher & Flom LLP is acting as its legal advisor.
SunEdison develops, finances, installs, owns and operates renewable power plants, delivering predictably priced electricity to its residential , commercial, government and utility customers.