Friday, April 15, 2016

SunEdison Enters Bankruptcy Negiotations

It was reported today by Bloomberg that SunEdison has entered into bankruptcy negotiations with its lenders.

"SunEdison Inc., the world’s biggest clean-power developer, is talking with creditors about restructuring financing, though it said the discussions are ongoing and there’s "no assurance" they will result in a deal.

The company and its first- and second-lien lenders entered into a confidentiality pact on March 17 for the financing transactions in a potential bankruptcy filing, the company disclosed in a regulatory filing to the Securities and Exchange Commission, which included a 34-page slide presentation to creditors.

The company will require a $310 million loan to fund it through a potential bankruptcy process, according to estimates in the March 17 presentation. The company projected using a total of $779 million in cash for the first quarter. It said it expects to reduce headcount by 50 percent from their October 2015 base with additional $150 million of non-labor savings.

Restructuring financing or debtor-in-possession loans, also known as DIP loans, give lenders control over the restructuring process
."

Still no word from the City of Georgetown on the impact this event will have on the contract with SunEdison to deliver solar generated electricity starting next fiscal year.

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