SunEdison Inc said that Ahmad Chatila has resigned as CEO and board member, effective immediately. He informed the company about his decision last week, Sunedison said in a filing made with the U.S. Securities and Exchange Commission Wednesday. Sunedison, which filed for Chapter 11 bankruptcy protection in April, appointed John Dubel as CEO to replace Chatila, effective Wednesday.
The solar energy company said that Chatila’s resignation was not due to any disagreement. He was given a waiver from the 30-day notice period. Chatila, who became CEO in 200, will not receive severance payments.
Dubel has served as SunEdison’s chief restructuring officer since April 29, and will continue in that role. He has more than 30 years of experience advising boards and companies on matters related to restructuring.
Dubel is also CEO of Dubel & Associates, which provides restructuring and turnaround services to underperforming companies which he founded in 1999. Most recently, Dubel was CEO of Financial Guaranty Insurance Co., a monoline insurance company. Prior to that, he was a partner in Gradient Partners, a single strategy distressed hedge fund.
Dubel is a member of the Turnaround Management Association and the American Bankruptcy Institute.
He commented: “I look forward to working with the rest of the SunEdison management team as we continue to transform the Company for the benefit of all its constituencies and move through the Chapter 11 process.”
“Our priority is to focus on SunEdison’s core strengths and work to create a more streamlined and efficient operator better positioned and more appropriately capitalized for a competitive future,” Dubel added.
SunEdison Selling Maine Wind Facility
Recently, SunEdison Inc agreed to sell one of its wind farms in Maine to a wind energy investors in San Francisco. Bankruptcy filings show that the deal is worth more than $26 million. The solar firm has been actively trying to sell off its $20 billion worth of assets as part of the bankruptcy process.
The bankrupt solar firm reportedly sold the developmental rights for a massive wind farm in Maine to a San Francisco-based wind energy investors. The reports suggesting that Pattern Energy Group agreed to acquire the proposed King Pine wind project from SunEdison for $26.5 million. Preliminary plans involve erecting 174 Vestas V136-3.45 MW wind turbines in Aroostook and Penobscot Counties.
If construction is completed, the 174-turbine wind project would have about three times the capacity of the state’s biggest wind farm to date. Reportedly, the King Pine wind project deal will be finalized once it wins a clean energy supply contract from an organization of southern New England states. The deal is scheduled to expire if it isn’t completed by Oct. 27. The review of the agreement is expected to take place until July 27. The deal would see Pattern pay SunEdison $13.5 million and another $13 million at closing for the purchase.
Shareholders Urged To End Fight
SunEdison Inc describes its situation as hopeless insolvency. With this, the bankrupt solar firm is urging shareholders to end their fight. In other words, investors shouldn’t have a committee representing them during the Chapter 11 process. Earlier, the company revealed in legal documents that it faces about $4.2 billion in prepetition claims. However, the firm was honest in stating that its situation amounts to hopeless insolvency. It added that the shareholders should not have an official committee representing them in the case.