Struggling SunEdisonInc. is putting up more than 1,000 MW of solar photovoltaicprojects in India for sale as it preparesto file for bankruptcy, Bloomberg News reported April 4, citing sourcesfamiliar with the matter.
The company has reportedly contacted several possible buyersin an effort to raise cash in the face of a loan default of at least $1.4billion. SunEdison's president in the Asia-Pacific region, Pashupathy Gopalan,said in response to questions that the company was looking for equity partnersfor the projects. "As a business model, we continue to pursue equitypartnerships in our projects to the extent allowed by the power-purchaseagreements," Gopalan told Bloomberg News.
The company is building 1,060 MW of PV plants in India andhas 168.9 MW in solar capacity fully or partially online. Once completed, theportfolio is expected to be worth $1.1 billion, the news outlet noted.
In case SunEdison goes for investors, the company woulddevelop the facilities as the engineering, procurement and constructioncontractor, another news report said April 4, citing people aware of theactivity. The company is also reportedly selling the 500-MW facility it won ina November 2015 reverse auction held in Andhra Pradesh, India.
During SunEdison's pursuit of potential buyers, Adani Grouphas expressed interest in purchasing the company's assets, Reuters reported thesame day. According to people close to the matter, the group has alreadynotified bankers of its interest.
Separately, SunEdison subsidiary has filed alawsuit against the parent, claiming that the company misused $231 million ofcash by using that money to improve its liquidity instead of completing therenewable energy projects in India, Reuters wrote April 4. TerraForm Globalsaid it was offered SunEdison's equity interests in the India projects inexchange. The case is filed in the Delaware Court of Chancery.
In the lawsuit, which named SunEdison executives AhmadChatila, Martin Truong and Brian Wuebbels as defendants, TerraForm claimed thatits parent used the cash to stabilize its financial position.
Before the lawsuit, TerraForm had warned that SunEdisonmight soon file for bankruptcy, the report said.