SunEdison shareholders balk at lack of answers in disclosure statement

By Caroline Salls

Pittsburgh, May 8 – An informal committee of SunEdison, Inc. shareholders objected to the disclosure statement for the company’s proposed Chapter 11 plan, arguing that the statement does not “provide a solid factual foundation from which to understand the debtors’ past and current condition,” according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The shareholder group said it has waited in the year since SunEdison filed bankruptcy to obtain basic information about its assets and debt and the value of the shareholders’ investment.

“The ad hoc shareholder committee has watched its hopes for equity value dwindle, while the estates have been quietly dismembered and forced to bear the exorbitant costs of administration now totaling more than $120,000,000,” the objection said.

The committee said the company’s plan and disclosure statement fail to address critical questions about why it decided not to reorganize, how it dissipated roughly $20 billion of investment capital, what happened to $9 billion of investments into SunEdison’s subsidiaries, why it eradicated its servicing business and why it sold some of its projects but not others.

Based in Maryland Heights, Mo., SunEdison operates renewable power plants. It filed for bankruptcy on April 21, 2016 under Chapter 11 case number 16-10992.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.