Judge limits asset transfers by SunEdison, TerraForm Power

A New York judge has ordered a temporary halt to SunEdison’s transfer of assets that are not in the course of ordinary business until an upcoming hearing. The ruling also applies to the company’s yieldco, TerraForm Power.

"Respondents are hereby restrained and enjoined from concealing, transferring or removing their assets, accounts or other property that may be subject to attachment, without fair consideration or in the ordinary course of business," reads a handwritten note by New York State Supreme Court Justice Charles Ramos at the end of the order.

The judge granted the request for the hold by the shareholders of Latin American Power. These shareholders filed suit for $150 million in damages earlier this week over a deal that fell through for SunEdison to buy the Chilean developer. Both sides have accused the other of failing to meet conditions to allow the sale to go through.

“We appreciate the constructive hearing and the judge’s thoughtful approach, confirming that we can continue to conduct our business without undue interference," read an official statement by SunEdison.

The shareholders say that the order was necessary as SunEdison may be insolvent by the time the lawsuit is completed. SunEdison has called the lawsuit “baseless” and vowed to “vigorously” fight it in court.

SunEdison stock had fallen to US$1.40 by mid-day Friday, its lowest level in 15 years.

Correction: This article was changed at 6:50 PM EST on February 12. The original version incorrectly stated that SunEdison and TerraForm were barred from transferring any assets, in replication of an error made by Bloomberg. The version has been changed to correct this by stating that this restriction only applies to assets sold without fair consideration, as well as to include the language of the judge and a SunEdison statement. We apologize for this error.