SunEdison, the ex-giant in the renewable energy industry, filed Chapter 11 on April 21, 2016. A series of restructuring has been gradually started, including the change of CEO announced in late June. SunEdison was recently confirmed to seek chances to sell its two YieldCo companies, TerraForm Power and TerraForm Global.
SunEdison confirmed the potential sale in a brief statement, noting that the company would world with TerraForm Power and TerraForm Global “through a jointly managed sales process and accompanying marketing protocol” that aims to control Class “B” shares in both units.
SunEdison’s new CEO John Dubel regards this decision as a helpful move to the company’s future restructuring. In addition, SunEdison will decide whether to monetize its interests in TerraForm Power and TerraForm Global.
PV Tech noted in a report that TerraForm Power had adopted a Stockholder Protection Rights Agreement that it had declared a dividend of one Right on each outstanding share of its Class “A” Common Stock. Stockholders shall entitled to receive the Rights by August 4, 2016.
“The Rights Agreement was adopted in response to the potential sale of a significant equity stake in TerraForm Power by SunEdison and the announced accumulation of TerraForm Power Class A shares by entities affiliated with Brookfield Asset Management,” said Peter Blackmore, Chairman and Interim CEO of TerraForm Power, cited PV Tech.
SunEdison’s solar and wind portfolio will significantly shrink if TerraForm Power and TerraForm Global were finally sold.