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SunEdison Sees Life Post-Bankruptcy, Creditors Contest Value

Submitted by jhartgen@abi.org on

SunEdison Inc. sees a possibility for life after bankruptcy even as its unsecured creditors have threatened to upend a reorganization plan, Bloomberg News reported yesterday. The clean energy giant, which said after its April bankruptcy that it was toggling between a wind-down or a reorganization, announced the rough terms of a restructuring on Tuesday. Its unsecured creditors have said that they intend to dispute a settlement that’s key to the plan at an upcoming trial however, raising questions about whether the company added any value for its business or lenders after a year in Chapter 11. The SunEdison plan, which comes after the piecemeal sale of more than $1 billion of assets including wind and solar farms, would split the company into a new, publicly traded unit and a trust to pursue lawsuits. It’s ability to pull off the reorganizing still hangs in the balance, hinging on Brookfield Asset Management Inc.’s deals to buy its two yieldcos, which in turn rests on a settlement that still needs court approval.