This morning SunEdison announced that the suit against it by shareholders of Latin American Power has been dismissed without prejudice following an arbitration agreement. As part of this agreement an order preventing the transfer of assets at SunEdison and yieldco TerraForm Power without sufficient compensation or in the ordinary course of business has been lifted.
In exchange, SunEdison will pay shareholders of Latin American Power US$28.5 million over the course of 2016.
The clearing of this lawsuit lifts some of the trouble that SunEdison is experiencing. The company is still being sued by David Teppers Appaloosa Management to prevent the future transfer of assets from Vivint Solar to yieldco TerraForm Power. This in turn could impact a Goldman Sachs loan which SunEdison was planning to use to finance the acquisition of Vivint.
Additionally, SunEdison is also undergoing an internal investigation by an audit committee, which has not found any wrongdoing at this time but has delayed financial filings. This in turn has caused Deutsche Bank to suspend ratings of SunEdison and TerraForm Power due to uncertainty around the companys liquidity status.
However, SunEdison stock experienced a minor recovery on the news, spiking to US$1.94 per share by 9:30 AM Eastern Time (U.S.).
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