Energy

SunEdison Seeks Financing for Likely Bankruptcy Filing

Paul Ausick

Published: April 15, 2016 11:50 am

Last Updated: January 13, 2020 10:42 am

In a filing with the U.S. Securities and Exchange Commission (SEC) Friday morning, SunEdison Inc. (NYSE: SUNE) said it has entered into confidentiality agreements with certain of its first- and second-lien lenders related to proposed debtor-in-possession financing for the struggling solar PV maker. As part of the agreement, SunEdison filed a copy of a presentation it made to second-lien lenders on March 17, 2016, less than two weeks following the company’s termination of its deal to acquire Vivint Solar Inc. (NYSE: VSLR).

The presentation filed Friday morning identifies three key goals for SunEdison:

• Maximize value for all SunEdison stakeholders.
• Move through the process as quickly as possible to maximize value and future growth potential.
• Focus on core regions (North America, India, Latin America) while growth regions are on “hot idle” until liquidity improves.

To meet these goals the company specified four key enablers:

• Achieve $310 million of financing.
• Realize relief from select obligations, including earn-outs.
• Monetize residential and small commercial business unit.
• Reduce operating costs to $400 million or less.

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