After filing for bankruptcy protection in April with $16.1 billion in liabilities, Sunedison Inc (OTCMKTS:SUNEQ) has engaged itself in a serious discussion with one of its yieldcos, TerraForm Global Inc (NASDAQ:GLBL). The world’s biggest renewable-energy developer is seeking to enjoin TerraForm Global in the sale of its Class B shares. However, it has not established any selling process of its controlling stakes.
Apparently, SunEdison seems not to have any plans for TerraForm Power Inc (NASDAQ:TERP) according to Greg Jones, an analyst at Credit Sights Inc. But again it could still be figuring it out given that TerraForm Power whose shares were up 11.1% at $3.61 is bigger. Nevertheless, neither SunEdison, TerraForm Global nor TerraForm Power has made any comments concerning any sales process.
About SunEdison bankruptcy
It is indeed a once well-known clean energy giant is on the verge of becoming bankrupt even though the company’s accounting practices have previously been questioned. As much as there is so much risk in the bankruptcy, the firm’s subsidiary TerraForm Global Inc. has cited the company’s “liquidity difficulties” that haven running over time. It has been operating on a severe financial platform.
Its shares have plummeted to 96% something that may have set back its subsidiaries. Two occasions of adjourned release of the company’s annual filing for its 2015 financial performance has been questioned not only by investors but also the investors. The question that both parties have been asking is “what is the company’s ability to generate cash flow and pay down debt?”
About TerraForm Global and TerraForm Power
As all this unfolds around SunEdison, TerraForm Power will be reaping big. It will become the largest beneficiary of the standard Class A shares. Apparently, it has also expressed its interest in buying the Class B shares as well.
TerraForm Global has ha a share of disappointment having made losses of as much as $350 million for the second half of last year. It also has a loss of $8 million for the first quarter of this year. Nevertheless, its Class A shares jumped 8.9% to $3.54.