A U.S. Bankruptcy Court has approved settlement agreements between bankrupt renewables firm SunEdison and its two yieldcos, TerraForm Global and TerraForm Power. The approvals represent a major milestone for the yieldcos as they work to complete their breakaway from SunEdison and instead become part of Canada-based Brookfield Asset Management.
According to the TerraForm yieldcos, the U.S. Bankruptcy Court for the Southern District of New York has authorized and approved the entry by SunEdison Inc. and its debtor subsidiaries into previously announced settlement agreements and voting and support agreements with the two yieldcos, as well as the performance by SunEdison of its obligations under these agreements.
As announced in March, Brookfield Asset Management agreed to fully acquire TerraForm Global, as well as acquire a controlling stake and assume sponsorship of TerraForm Power. These court approvals are a condition to the completion of the Brookfield buyouts.
The Brookfield merger and sponsorship transactions are still subject to certain closing conditions, including shareholder approval by the majority of Class A shareholders (excluding SunEdison and Brookfield), regulatory approvals and the resolution of certain litigation against TerraForm Global.
Peter Blackmore, chairman and interim CEO of both TerraForm yieldcos, calls the bankruptcy court approvals “key” and says the companies “look forward to completing the remaining conditions.”