SunEdison's TerraForm Units Said to Hire AlixPartners as Adviser

Teetering clean-energy giant SunEdison Inc.’s units, TerraForm Global Inc. and TerraForm Power Inc., have hired AlixPartners as a financial adviser ahead of a potential bankruptcy filing by their parent, according to two people familiar with the situation.

AlixPartners was engaged by the units to protect their financial interests in case of a bankruptcy, said the people, who asked not to be identified because the information is private.

A representative for TerraForm Global and TerraForm Power acknowledged that the units have hired financial and legal advisers in case of a potential restructuring but declined to identify the firms.

SunEdison representative Ben Harborne declined to comment.

SunEdison said Friday that it is in talks with first- and second-lien lenders to procure a $310 million loan to carry it through bankruptcy reorganization. The disclosure comes after the company failed to make a $2.6 million interest payment on its 2 percent convertible bonds maturing in 2018.

Additionally, TerraForm Global bondholders are in talks with Dechert LLP and Wilkie Farr & Gallagher and may hire one of the law firms to help recover $231 million in disputed assets, according to two other people familiar with the matter.

Representatives for Dechert and Wilkie Farr didn’t immediately respond to requests for comment.

TerraForm Global is alleging in a lawsuit that its parent misused its cash to “to prop up its flagging liquidity position.”

SunEdison acknowledged Thursday that it has been “overly optimistic” in its cash forecasts, and promised stronger controls. It was the company’s first admission of financial woes that have dragged down its shares 99 percent since July.

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