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Renewable Energy Developer SunEdison Files for Chapt. 11 Bankruptcy

SunEdison Files for Chapter 11 Bankruptcy

SunEdison Inc. (NYSE: SUNE) and some of its subsidiaries voluntarily filed for Chapter 11 bankruptcy in the Bankruptcy Court for the Southern District of New York.

SunEdison’s publicly-traded yieldcos, TerraForm Power (Nasdaq: TERP) and TerraForm Global (Nasdaq: GLBL), are not part of the filing. The company has started the process for restructuring, including securing commitments for new capital totaling up to $300 million in debtor-in-possession financing from a consortium of first and second lien lenders. The new financing will support day-to-day operations during reorganization, including proceeding with work on ongoing projects, both in the U.S. and elsewhere; paying employee wages and benefits; providing services to customers; paying vendors and suppliers; and complying with all regulatory obligations.

SunEdison was set to buy Vivint Solar, but the $2.2 billion deal was called off in March after Vivint said SunEdison failed to secure financing.

SunEdison hired Rothschild Inc. and McKinsey Recovery & Transformation Services U.S. LLC as advisors in connection with the restructuring. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor.