SunEdisonInc.'s plan to sell its solar materials business is drawingobjections from business counterparties, including former affiliates.
SunEdison, which filed in April for Chapter 11 protection in New York,said in August thatit was looking for competing offers after GCL-Poly Energy Holdings Ltd. submitted a $150 millionstalking horse bid for SunEdison Products Singapore Pte. Ltd., MEMC PasadenaInc. and Solaicx Inc., which manufactures solar panels, as well as SunEdison'sstake in SMP Ltd., amanufacturing joint venture in South Korea.
SunEdison Semiconductor Ltd., a silicon wafer manufacturerthat SunEdison spunoff in 2014, and Albemarle Corp., a chemical company that leased land toSunEdison, said the proposed deal also includes contracts and agreements thatSunEdison is barred from reassigning.
A SunEdison spokesman declined to comment on Oct. 5.
Some of the claims stem from SunEdison's February a polysiliconplant in Pasadena, Texas, as part of a broader restructuring effort.
After separating itself from SunEdison Semiconductor,SunEdison agreed to supply its former affiliate with silicon at predeterminedprices through 2025. However, the agreement was effectively terminated afterSunEdison decided to close the Pasadena plant and SMP ceased operations andfiled for rehabilitation in South Korea in May, SunEdison Semiconductor said ina filing in U.S. Bankruptcy Court for the Southern District of New York.
Before SunEdison can transfer the supply agreement to adifferent company, SunEdison Semiconductor argues SunEdison would have to payit upwards of $26 million in unpaid obligations and other costs associated withthe breached contract. This valuation is "a far cry," SunEdisonSemiconductor said, from SunEdison's contract notice filed with the court,which did not quantify any unpaid obligations.
Also, on the potential contract list that SunEdisonsubmitted for the GCL-Poly sale was a land lease with Albemarle for theproperty in Texas where the shuttered plant is located.
SunEdison previously said the agreement expired at the endof 2015, when Albemarle issued a termination letter for delinquent invoices."If the agreements were not part of the estate when the Debtors filed forbankruptcy, the Agreements cannot be assumed and assigned," Albemarle,which said it is owed $4 million by SunEdison, wrote in a court filing.
GCL-Poly is an affiliate of , a Chineseenergy firm that reportedly plansto compete for SunEdison's stake in the yieldco