SunEdison debtors seek court approval of $15 million C&I business sale

By Caroline Salls

Pittsburgh, Jan. 5 – SunEdison, Inc. and Sun Edison LLC requested court approval of the at least $15 million private sale of their commercial and industrial business (C&I) to MyPower Corp., according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the assets being sold include Sun Edison LLC’s ownership interests in Forefront Power, LLC, a newly formed, wholly owned subsidiary, some intellectual property assets owned by SunEdison, Inc. and books and records related to the C&I business owned by SunEdison, Inc.

The company said the purchase price is comprised of $9.5 million payable in cash, a $500,000 escrow amount to be released to the sellers within 12 months of the closing if specified conditions are met, a $5 million escrow amount to be used to incentivize MyPower to cause its subsidiary company to complete post-closing services and authorized pipeline expenses estimated at $2.8 million.

In addition, SunEdison said the cash purchase price is subject to downward adjustment, capped at $3 million, for the termination of, or failure by SunEdison to deliver, pipeline projects or pipeline contracts at closing.

According to the motion, MyPower was the only party willing and able to offer the company a complete transaction that accomplished the goals of transferring remaining C&I pipeline projects, transferring the platform as a going-concern operation and providing job opportunities to a substantial number of SunEdison employees and entering into a services agreement under which the buyer would provide services to the company post-closing in order to permit SunEdison to continue to satisfy its ongoing obligations to develop and ultimately transfer projects to various buyers in connection with other transactions.

The company requested a Jan. 24 sale hearing.

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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