US solar firm SunEdison files for bankruptcy

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SunEdison Inc, once the fastest-growing US renewable energy company, filed for Chapter 11 bankruptcy protection on Thursday as years of debt-fueled acquisitions proved unsustainable.

In its bankruptcy filing, the company said it had assets of $20.7 billion and liabilities of $16.1 billion as of September 30.

The company said its two publicly traded subsidiaries, TerraForm Power Inc and TerraForm Global Inc, were not part of the bankruptcy. The company said it secured up to $300 million in new financing from its first-lien and second-lien lenders, which is subject to court approval. The money will be used to support SunEdison’s operations during its bankruptcy, such as paying wages and vendors, and proceeding with ongoing projects. “Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues,” Reuters quoted Ahmad Chatila, SunEdison chief executive officer as saying.

In November 2015, SunEdison created quite a stir in the Indian solar market by quoting a record low generation tariff of Rs 4.63 per unit (kWh) when global bids were opened for a solar photovoltaic technology-based power project in Andhra Pradesh. Coal, power and renewable energy minister Piyush Goyal had, on Tuesday in London, said that some firms not doing well will not impact India’s solar power plans. “There are always certain cases of firms failing all over the world in every industry. There was a point of time where very large airline companies failed … You have a failed steel sector in the UK. It doesn’t mean that the whole sector collapses,” Goyal was quoted by PTI as saying when asked about the debt problems of SunEdison. “… it’s not as if only these one or two firms brought the tariffs down. We have 50 companies who brought tariffs down even below what Sun Edison or Sky Power quoted. So, I don’t think it deters us or deflects the success of the solar programme at all,” the minister had said.

Source: The  Indian Express

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