SunEdison Inc (OTCMKTS:SUNEQ) creditors and shareholders going to battle. This time, they are fighting over the bankrupt solar firm’s insurance policies. These multi-million-dollar policies provide SunEdison executives with coverage. But does the green energy company have any stake in the policies?
SunEdison Inc Prompts Battle Over Insurance
The fallout from SunEdison’s Chapter 11 bankruptcy protection is still going on. As the solar firm tries to sell off its assets, submit its quarterly and annual financials and pay off its creditors, there is a new hiccup that is unfolding: insurance policies.
According to Reuters, SunEdison creditors and shareholders are sparring over insurance policies.
Reportedly, the shareholders and creditors are going to courts over insurance policies totaling $150 million in coverage for directors and officers at SunEdison. A manager of public pensions says that SunEdison has no stake in the exorbitant insurance policies. This means that it should refrain from blocking lawsuits against them.
The Municipal Employees’ Retirement System of Michigan had been arguing the matter in court papers. It was explained on Monday that its securities fraud class action suit should not be stayed due to the solar firm’s bankruptcy process. The reason why is because payments from the policies may be included in the green company’s estate.
Earlier this month, the official committee of unsecured creditors said that it has a property interest in the insurance policies. It is this interest that could help fund settlements and judgments during the litigation. Thirty lawsuits are trying to be halted. A final judgment is expected to be made prior to the holiday break.
Indeed, this is just another hiccup into the ongoing SunEdison Chapter 11 saga. The creditors and shareholders have been battling over an array of matters since SunEdison filed for Chapter 11 in April.
The Latest News Pertaining to SunEdison Inc
SunEdison has been busy selling off its assets, primarily its solar and wind projects across the globe.
Meanwhile, its yieldcos have been wanting to separate itself from SunEdison. TerraForm Power recently said that it aims to be independent from its parent firm sometime next year. The firm noted that it is installing its own IT infrastructure and operations and maintenance systems. It is also working to secure a greater number of third-party service providers to support its solo operations.
Can the yieldcos survive on their own? Both yieldcos are expected report losses this year. Despite their pledges that they are financially healthy, the figures suggest that there is still fallout from SunEdison’s bankruptcy that is impacting the yieldcos.
Moreover, it was reported earlier this month that the yieldcos would be delaying their financials once again. Citing “material weaknesses” in their internal controls over financial reporting, TerraForm Power and TerraForm Global will have to delay filing their 2015, first-quarter, second-quarter and third-quarter numbers. SunEdison is also facing the same thing.
TerraForm Power shares are down nearly two percent to $12.66. TerraForm Global shares are down 1.3% to under $4.