SunEdison Adviser Says Assets Now Worth Up to $1.5 Billion

  • New estimate almost doubles previous $850 million figure
  • Bankrupt renewable-energy giant’s plan deadline pushed back

SunEdison Inc.’s assets in bankruptcy are now worth $1 billion to $1.5 billion, based in part on recent offers to buy some of its solar and wind farms, a company financial adviser testified.

Homer Parkhill of Rothschild Inc., which is counseling the renewable-energy giant on the sale process following its April Chapter 11 filing, offered the new valuation in Manhattan federal court Thursday. The estimate replaces a figure of $850 million that Parkhill put forward in June.

The latest price tag also factors in recent rises in the shares of SunEdison’s two yieldcos, Parkhill said. The company holds controlling stakes in both yieldcos, which were set up to buy energy projects that SunEdison develops.

“There have been over 100 indications of interest across the portfolio of projects and platforms” that are up for sale, Parkhill said. Bids aren’t yet binding.

U.S. Bankruptcy Judge Stuart Bernstein is being asked to consider whether enough money would be left to repay shareholders after the company deals with an estimated $4 billion to $5 billion in debt.

Paid Last

In U.S. bankruptcies, stockholders get paid last, if at all. Should Bernstein decide SunEdison’s shareholders stand to collect something, they could form a committee to represent their interests, and SunEdison would have to pay the committee’s expenses. Thursday’s hearing ended without a ruling.

SunEdison filed this year’s biggest U.S. bankruptcy, listing $16.1 billion in liabilities. Since then, the company has been trying to organize asset sales and determine whether it will attempt to carry on as a going concern or liquidate altogether.

Parkhill said the deadline for the company to present lenders with a liquidation proposal or reorganization plan has been extended. A prior, June 28, deadline has passed and he didn’t give a new date. The adviser said several draft business plans have been shared with lenders but nothing formal has been filed.

The case is In re SunEdison Inc., 16-10992, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

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