UPDATE 2-Appaloosa raises stake in SunEdison unit TerraForm Power

Fri Apr 1, 2016 9:17am EDT
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April 1 (Reuters) - Appaloosa LP disclosed a higher stake in TerraForm Power Inc, one of the two publicly listed units of troubled solar energy company SunEdison Inc, as the hedge fund pushes for an overhaul of TerraForm's conflicts committee.

The hedge fund led by billionaire David Tepper said on Friday it owned 10.88 percent of TerraForm Power as of March 29, up from the 9.50 percent it held as of Jan. 1.

TerraForm Power shares were up about 4 percent at $9 in premarket trading.

Appaloosa filed an amended lawsuit on Tuesday, seeking to overhaul TerraForm Power's conflicts committee, claiming that SunEdison, the company's controlling shareholder, had breached its fiduciary duties.

The committee was set up to evaluate transactions involving potential conflicts of interest between TerraForm Power and any affiliates, including SunEdison.

The hedge fund filed a lawsuit in January seeking to prevent TerraForm Power from buying some of the assets of Vivint Solar Inc, a solar panel installer SunEdison had agreed to buy.

Vivint said in March it had scrapped the deal, amid concerns about SunEdison's finances.

TerraForm Power said on Wednesday that Brian Wuebbels had stepped down as its chief executive, soon after Appaloosa called for his removal.   Continued...