SunEdison Inc (OTCMKTS:SUNEQ) has received a four-week ban on the sale of its assets in Karnataka. A court in India has restricted its restructuring officer from selling solar assets in Karnataka. The ban, which will last until Aug. 26, has been put forward because a contractor has yet to be paid.
SunEdison Inc Given 4-Week Ban on Asset Sale
The High Court of Madras presented an order Friday that would prevent the bankrupt solar firm from selling its assets in Karnataka. This means SunEdison could not sell its 24 percent stake in three 30-MW solar parks owned by the firm.
According to local reports, the court put the ban in place because Refex Energy still has not been paid. The engineering, construction and procurement firm wanted to receive its payment before the assets were sold. Refex constructed the three Karnataka plants under the power purchase agreements (PPA). It remains unknown as to how much money SunEdison owes the contractor.
SunEdison has been on an asset sale binge in the last couple of months. John Dubel, the chief restructuring officer, confirmed that SunEdison is in negotiations with several firms that are interested in buying its assets in India. Dubel has been working diligently to pay back its creditors during the bankruptcy process.
Recent reports suggest that Greenko Grop Plc will likely be the one to buy the solar firm’s assets in India.
SunEdison filed for Chapter 11 bankruptcy protection in late April. At the time of its filing, SunEdison posted $20 billion in assets and more than $16 billion in liabilities. Since then, SunEdison has been in talks with creditors. The once powerful green energy firm cratered after expanding too much, taking on too much debt and undergoing a series of legal and pecuniary woes.
What’s Going on With SunEdison Inc in India?
SunEdison has been dumping its assets all over the world this summer. It has been selling off assets across the U.S., India and Australia. For analysts, India has been the most interesting case so far.
India, which has launched an aggressive solar power initiative in 2014, tapped SunEdison to be in charge of the solar portfolio. However, due to the bankruptcy process, SunEdison has started to sell off assets nationwide.
The solar firm is in the process of selling large chunks of its assets in India. It is in the middle of negotiations with the likes of various domestic and foreign of firms. Some of the interested groups are Adnani Group, Amplus Energy Solutions and Fortum Oyj.
Despite the recent news in India, SunEdison has confirmed that it plans to stick to its Indian growth strategies. It’s unclear as to how exactly the solar firm will try to make its presence felt in India.
With funds to operate in bankruptcy, SunEdison still needs to pay back its creditors and perhaps even stockholders. Until then, India will likely move on and achieve its target. The solar target was recently doubled by the Indian government.