SunEdisonInc. confirmed that it is in talks with a pair of affiliatedholding companies to resolve more than $3 billion in claims against thebankrupt renewable energy developer.
The yieldcos, TerraForm Power Inc. and , on Sept. 25said they had begundiscussing with SunEdison options for settling claims that the developer failedto meet obligations under sponsor agreements and interfered with theaffiliates' businesses.
The talks are happening at the same time the three companiesare trying to broker a sale of SunEdison's yieldco holdings, which are believedto be the developer's most valuable assets.
"Our Chapter 11 process has been long and complex andwe are now at a critical stage as it relates to the Yieldcos," SunEdisonCEO John Dubel said in an Oct. 3 news release.
SunEdison said it "disagrees with many" of theyieldcos' claims and is "reviewing and may assert" its own set ofclaims against its affiliates.
SunEdison filed for Chapter 11 protection in U.S. BankruptcyCourt for the Southern District of New York in April. The company's downfallstarted in mid-2015 after excitement about its aggressive growth strategy gaveway to concerns about skyrocketing debt and creative financial practices.Before filing for bankruptcy, SunEdison said it was being investigated by the U.S. Department ofJustice and the SEC.