In the last trading session, the stock price of Sunedison Inc (OTCMKTS:SUNEQ) declined over 11% to close the day at $0.104. The decline came at a share volume of 5.01 million compared to average share volume of 8.28 million.
SunEdison’s unsecured creditor committee intends to appeal Claw Back Provision against Terraform Global and Terraform Power. Unsecured Creditor Committee considers that company is owed hundreds of millions by Yieldcos. Putting money in the Terraforms is big risk following these claims and the possibility of delisting.
A few weeks earlier, the market analysts suggested the possibility of a SunEdison – TerraForm merger deal. The indication came because TerraForm Power and TerraForm Global might have the ability to save their parent and sponsor, SunEdison from its liquidity issues. This deal could have dissolved the litigations between the three firms, clean up accounting mess between the yieldcos and company, and provide an advancement arm to them.
Recent progress in SunEdison’s court filings indicate that yieldcos may not have an option. The recent docket submitted by Unsecured Creditors Committee Creditors’ group indicates the pipe dream may have some legs. Though instead of a merger deal, the Committee intends to force the union by utilizing the Bankruptcy Claw Back Rule. They are asking authority to accuse certain claims on behalf of Docket 1557, in which they said that they intend to “pursue claims for preferential and fraudulent transfers against company’s non-debtor, publicly-listed “Yieldco” subsidiaries.
Primarily, this docket was assumed to be a response to the Yieldcos’ assertions against SunEdison. But a thorough look shows the Unsecured Creditors Official Committee has gone rogue. Earlier in October, the Committee stated that SunEdison Debtors straightaway prosecute the Proposed Assertions on behalf of the estates or give the Committee standing to perform so, however SunEdison rejected to do either. As a result, the Committee moved to step out from company’s narrative by disapproving the first Patrick Cook statements.