On Wednesday, a judge in the U.S. state of Delaware rejected a request by hedge fund manager David Teppers Appaloosa Management to prevent SunEdison from transferring assets from Vivint Solar to yieldco TerraForm Power.
Appaloosa is a significant shareholder in TerraForm Power, and Tepper had argued that including Vivint Solars residential solar assets in TerraForms portfolio of utility-scale projects would weaken its portfolio.
SunEdison is still in the process of acquiring Vivint, and this ruling removes a key hurdle to that process. Its a win for us, SunEdison spokesperson Ben Harborne told pv magazine. The news follows shortly on a vote by Vivint shareholders approving the acquisition, the terms of which were modified in December.
The market has also responded positively, with SunEdison shares rising from a low of $1.27 earlier on Thursday to $2.26 in after-hours trading.
SunEdison's troubles are far from over. In addition to the ongoing suit by Appaloosa, the company is also being sued by shareholders of Latin American Power, and its stock value has fallen by more than 90% since last summer.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.