SunEdison Inc. hid its “toxic” financial state while granting hundreds of millions of dollars in benefits to its most powerful lenders before its April bankruptcy, its creditors say in a lawsuit that seeks to claw some of the money back, Bloomberg News reported on Friday. The lawsuit comes as SunEdison attempts to sell off assets, including yieldcos TerraForm Power Inc. and TerraForm Global Inc., while in bankruptcy — and more than a year after the developer’s finances began deteriorating. In January, in an effort “to put off the day of reckoning” for alleged financial manipulations and to hide a failed business strategy and mismanagement, SunEdison gave a “sweetheart deal” to its first- and second-lien creditors through a series of transactions,” according to the lawsuit, filed in Manhattan as part of the company’s bankruptcy.
