SunEdison financial woes also threaten yieldcos that hold assets
By Jessica DiNapoli and Arathy S Nair
NEW YORK (Reuters) - The prospect of a near-term bankruptcy for solar giant SunEdison IncSUNE.N also threatens the separate companies it created to hold renewable energy assets - the so-called "yieldcos."
A judge could rule that the yieldcos must be included in a SunEdison bankruptcy, analysts said. The companies could also be sold.
Either way, a potential SunEdison bankruptcy filing would be unpredictable for the yieldcos because all three companies are so intertwined.
The filing could come as soon as this week as SunEdison reaches the end of a grace period set by lenders stemming from its delayed annual report.
TerraForm Global and Power said in a joint statement to Reuters that the companies "do not rely substantially on SunEdison for funding or liquidity" and can support their operations on their own.
A SunEdison spokesman did not immediately respond to requests for comment.
SunEdison controls TerraForm Power and Global by holding the majority of their voting shares. On their own, both companies have stronger financials than their parent. Continued...