SunEdison yieldcos TerraForm Power & TerraForm Global granted financial report extension

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Tarnished by their association with the savaged reputation of bankrupt renewable energy company SunEdison, yieldcos TerraForm Power and TerraForm Global have been granted extensions on the deadline for filing their annual 2015 financial reports.

Although not included as part of the bankruptcy of SunEdison, both yieldcos were set up by their beleaguered parent company in one of a series of industry gambles and overreaches that finally put paid to SunEdison’s ambitions, which resulted in an insolvency filing last month.

However, TerraForm Power and TerraForm Global are publicly traded units that hold renewable energy assets, many of which were bought directly from SunEdison. Because of the complexity of this setup, both yieldcos have been able to agree extensions for their financial reporting.

TerraForm Power LLC will, under the amended pact, have until May 28 to file 2015’s annual report. The previous deadline was May 7, which has now passed. TerraForm Global, meanwhile, has until June 30 to file its quarterly report and August 29 to file its 2015 annual report.

In April, TerraForm filed a lawsuit with the Securities and Exchange Commission (SEC) against its parent company, alleging that SunEdison misappropriated $231 million of the company’s cash in order to pay off a loan that was in danger of defaulting and could have triggered a cross-default on $8 billion of debt.

The lawsuit is seeking undetermined damages from SunEdison, as well as “any other relief as the court may deem just and proper”.

Legal proceeding are also being taken against SunEdison by U.S. residential lease provider Vivint Solar, which was the subject of an ill-fated $2.2 billion merger and acquisition (M&A) deal with SunEdison and the TerraForm yieldcos.

Reuters has also reported this week that Vivint Solar will participate in SunEdison’s bankruptcy case in order to maximize its recovery of claims against the firm. The allegations stated in a lawsuit suggest that SunEdison willfully breached its obligations under the terms of the M&A agreement.

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