SunEdison plan effective Dec. 29, emerges as privately held company

By Caroline Salls

Pittsburgh, Dec. 29 – SunEdison Inc.’s plan of reorganization took effect on Friday, according to a news release.

The company said it emerged from Chapter 11 as a newly reorganized, privately held company.

As previously reported, the plan was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on July 28.

Following more than $2.3 billion of gross asset sales throughout its Chapter 11 cases – including the sale of its most valuable asset, its interests in non-debtor affiliates TerraForm Power, Inc. and TerraForm Global, Inc., SunEdison said it emerges with a significantly smaller footprint and will continue to focus on monetizing its remaining assets.

As part of the plan negotiation process, the company said it facilitated key settlements with its diverse constituent groups.

Under a settlement with SunEdison’s yield companies, SunEdison will receive 36.9% and 25%, respectively, of the total consideration flowing to TerraForm Power and TerraForm Global from jointly supported transactions with Brookfield Asset Management, Inc.

Under a committee/BOKF, NA settlement, numerous objections and related lawsuits will be dismissed in exchange for the transfer of meaningful assets to a general unsecured creditor/litigation trust for the benefit of holders of general unsecured claims.

The plan calls for distributions to holders of second-lien claims from a combination of either 10% of new common stock, TerraForm class A shares, a reinstated second-lien claim amount and 100% of class B trust interests or 100% of the new common stock, reinstated second-lien claim amount and class B trust interests, based on the holders’ election.

Eligible holders of second-lien claims will also receive a share of rights offering subscription rights.

Distributions to holders of general unsecured claims will be made, based on their share of the class A trust interests, from the GUC/litigation trust.

The trust will be seeded with $7.5 million, and trust causes of action, directors and officers insurance proceeds, a YieldCo avoidance allocation and a voluntary fee reduction amount will be transferred to the trust.

Interests in SunEdison will be cancelled. Interests in subsidiary debtors will be either canceled or reinstated, but holders will receive no distribution in either case.

Richard Katz will serve as chairman and chief executive officer of reorganized SunEdison.

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.

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