A unit of TerraForm Global Inc. has 90 days to issue its delinquent annual report or it could face demands to pay off hundreds of millions in debt six years early, partly because bankrupt parent SunEdison Inc. hasn’t filed its own financial statement, Bloomberg News reported today. Holders of bonds issued by TerraForm Global Operating LLC sent a notice of default on the yieldco’s 9.75 percent senior notes due in 2022, according to a statement Wednesday from their law firm, Willkie Farr & Gallagher. The group represents more than 25 percent of aggregate principal of the notes, according to the firm, which said failure to remedy the problem in 90 days would constitute an “event of default.” If that happens, bondholders could demand payment in full, said Julia Winters, a bankruptcy analyst at Bloomberg Intelligence. There’s $760.4 million outstanding on the issue, according to data compiled by Bloomberg. The bondholders “remain committed to continuing an open dialogue and working productively with the company toward a resolution in the interests of all stakeholders,” according to Willkie’s statement. Read more.
In related news, SunEdison Inc. terminated the employment of Chief Financial Officer Brian Wuebbels and said that it would delay filing its 10-Q report for the quarter ended March 31. The company said it has given Wuebbels a 30-day notice period, during which he will be an adviser to the company's Chief Restructuring Officer, John Dubel. The company filed for chapter 11 protection in April after a short-lived but aggressive binge of debt-fueled acquisitions that proved unsustainable. Read more.
