SunEdison’s official committee of unsecured creditors and BOKF filed with the U.S. Bankruptcy Court separate objections to the Debtors’ motions for approval of (i) settlement agreements among Debtors and Yieldcos and (ii) performance under various agreements in connection with the Yieldco mergers.
The committee asserts, “The Creditors’ Committee objects to the Debtors’ proposed settlements with the Yieldcos. As the Court is aware, the Creditors’ Committee sought standing to bring Avoidance Actions against the Yieldcos, pursuant to the Derivative Standing Motion, over four months ago. The Derivative Standing Motion remains pending, subject to the involvement of the Creditors’ Committee in potential settlements with the Yieldcos and allocation of the proceeds of such settlements to general unsecured creditors (the ‘Avoidance Action Allocation’).”
In addition, “The proposed settlements, and specifically the Avoidance Action Allocation, fall well short of appropriately compensating the estates (and general unsecured creditors) for the ‘colorable’ and ‘substantial’ Avoidance Actions the Debtors hold against the Yieldcos….As the Creditors’ Committee explained in its Derivative Standing Motion and related filings, while the Debtors were insolvent, TERP and GLBL each received from certain Debtors, in connection with the TERP and GLBL IPOs and thereafter, completed energy projects, services and payments worth hundreds of millions, if not billions, of dollars, for which the Debtors did not receive reasonably equivalent value in exchange.”
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