SunEdison pushes back on TerraForm settlement proposal

Last week, TerraForm Power (TERP) revealed information on a proposal to SunEdison (SUNE), under which the bankrupt renewable energy developer would drop claims other than the reimbursements which were required under its sponsorship agreement, with SunEdison and other shareholders receiving equal value per share in the event of a sale.

However, on the other side of the table TerraForm Power is facing John S. Dubel as the CEO of SunEdison – a man whose professional career is based on restructuring companies for the maximum value for shareholders, which inherently includes paying as little as possible on claims.

Today Dubel’s SunEdison issued a statement which, while expressing preference for a collaborative process, laid out that the company is not entirely ready to give up its claims without compensation. In three brief bullet points, SunEdison argues that TerraForm’s presentation does not adequately account for SunEdison’s defenses against legal claims, counter-claims against TerraForm Power, or its contractual rights in other regards.

Regarding its claims against TerraForm, SunEdison notes the value of claims outlined in a recent motion filed by the official creditor’s committee. Additionally, SunEdison appears to think that it may have some contractual leverage to get a little extra out of any sale.

“The premise set forth in the Presentation that SunEdison’s interests in TERP be treated ‘ratably’ with TERP’s other equity interests does not adequately account for SunEdison’s contractual rights and interests and this issue will be addressed in the settlement negotiations,” notes the statement.

SunEdison’s comments end with a reminder of who Dubel is working for. “Overall, SunEdison is focused on maximizing the value of the estate for its creditors, and will continue to do everything it can in furtherance of that objective,” reads the statement. “SunEdison is also pleased that TERP recognizes the benefits of a consensus between TERP and SunEdison as it explores strategic alternatives.”