SunEdison Inc (OTCMKTS:SUNEQ) has now doubled the value of its assets. When the solar firm filed for Chapter 11 bankruptcy protection in late April, it listed the value of its assets at $850 million. Now, however, those same assets are worth anywhere between $1 billion and $1.5 billion.
SunEdison Inc’s Billion-Dollar Assets
Soon after filing for bankruptcy, the firm hired Rothschild to be in charge of the sale of its portfolio of assets. The assets are wide-ranging and are scattered all over the world. So far, Rothschild has been successful in selling off or nearly selling off a handful of assets.
Homer Parkhill, a company financial adviser for Rothschild, revised his valuations for SunEdison. He now claims that because of recent offers of the firm’s solar and wind farms, its assets are valued as high as $1.5 billion.
In a Manhattan federal court filing on Thursday, Parkhill raised the price tag also due to the jump in shares for its two yieldcos – TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL). The yieldcos are controlled by SunEdison. They were created to purchase energy projects that SunEdison creates.
“There have been over 100 indications of interest across the portfolio of projects and platforms that are up for sale,” Parkhill said in the document.
Moving forward, U.S. Bankruptcy Judge Stuart Bernstein will determine if there is enough money to repay shareholders after the solar firm handles up to $5 billion worth of debt.
In any bankruptcy proceeding, shareholders usually get paid last. Oftentimes they receive nothing at all. If the judge concludes that SunEdison stockholders can collect something then they would be permitted to start a committee to represent their interests. This would have to be paid for by SunEdison.
For the last couple of months, shareholders have been trying to form a committee. SunEdison has repeatedly told them that their endeavors are futile.
“There is nothing the Debtors desire more than to be able to pay all creditors and return value to equity holders,” SunEdison wrote in documents last month. “Unfortunately, the facts of this situation lead to the inevitable conclusion that this is entirely unlikely.”
With roughly $4.2 billion in prepetition claims, the solar firm has described its situation as “hopeless insolvency.”
SunEdison Inc Retirement Plans Take a Hit
SunEdison’s retirement plan is taking a serious hit after the firm’s stock collapsed last year. Members of its $155 million retirement plan presented more than $10 million in losses from investments last year, and most of the losses came from investments in SunEdison stock.
According to an annual report from the retirement plan, 13 percent, or about $17 million, of its $133.1 million total investments was held in SunEdison stock. By the end of last year, the retirement plan had $155 million in net assets available for benefits, but just $5 million of that money was in SunEdison stock.
The retirement plan’s assets only grew because of fresh contributions from the participants and SunEdison.
One month before its bankruptcy, SunEdison presented a blackout notice. This would prevent retirement plan investors from further investing their money in SunEdison shares. It also stopped them from transferring money from their other investors into company stock.
Last year, SunEdison shares collapsed nearly 80 percent. The company took on too much debt, expanded too quickly, ran into financial and legal troubles and failed in corporate governance.