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.
Wuebbels is also SunEdison’s chief financial officer, but the company has said he would be replaced this month.
TerraForm Global Inc, SunEdison’s other unit, said this week there was a “substantial risk” its parent, which is saddled with almost $12 billion of debt, would file for bankruptcy.
The U.S. Department of Justice and the U.S. Securities and Exchange Commission have sought details related to SunEdison’s Vivint deal and transactions with its two units.
SunEdison has received a subpoena from the DoJ and an “informal inquiry” from the SEC, the company said on Thursday.
Shares of SunEdison, which has lost most of its market value in the past 12 months, were down about 7.5 percent at 49 cents premarket. TerraForm Global shares were up 3.8 percent at $2.47.
Reporting by Amrutha Gayathri in Bengaluru; Editing by Sriraj Kalluvila and Anupama Dwivedi