SunEdison plans to stop interest payments on yieldcos’ notes

Bankrupt solar company SunEdison (SUNEQ.PK) plans to stop making interest payments on behalf of its two yieldcos, TerraForm Global Inc (GLBL.O) and TerraForm Power LLC (TERP.O), due to its Chapter 11 proceedings, the two companies said.

SunEdison had agreed to pay interest on senior notes issued by TerraForm Power and TerraForm Global, the two companies said on Wednesday.

The two yieldcos called SunEdison’s decision “invalid” and said they would contest the decision, saying that announcing the decision in a filing did not mean they had acknowledged it.

They said that even if SunEdison failed to make the interest payments, they would be able to continue to service their debt with current liquidity and cash flow from operations.

TerraForm Global said last month that SunEdison was looking to sell its interests in the yieldco.

Source: Reuters