SunEdison is filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code
in the Bankruptcy Court for the Southern District of New York today.
The SunEdison YieldCos, TerraForm Power and TerraForm Global, are not
involved in the filing.
The company has also secured commitments for $300 million in new
debtor-in-possession (DIP) financing from a group of first and second
lien lenders to keep the company afloat during the restructuring.
Ahmad Chatila, oddly still SunEdison's CEO, comments: "Our decision to
initiate a court-supervised restructuring was a difficult but important
step to address our immediate liquidity issues," adding, "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."
The troubled firm, once the largest renewables developer in the world,
has a dedicated web page to answer questions on the bankruptcy filing here.
Bloomberg New Energy Finance’s Head of Solar, Jenny Chase, comments,
"SunEdison’s bankruptcy says more about the company’s strategic
decisions than about the solar
industry as a whole. Comparable companies SunPower and First Solar have
managed a develop-and-sell business profitably over the past three
years." She adds, "What has distinguished SunEdison has been the
relentless and unfocused pursuit of growth, in which it has invested
vast amounts of borrowed money. Not all of its ventures succeeded, which
is inevitable in the project development business, but SunEdison’s
win-to-loss ratio was evidently insufficient. It borrowed a lot of money
and lost it -- or at least tied it up in projects at various degrees of
completion, which it needs to sell to realize the gains and pay back
creditors."
source: https://www.greentechmedia.com
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