CNH Partners and AQR Capital Management filed with the U.S. Bankruptcy Court an objection to SunEdison’s motion for (i) entry into the backstop commitment letter, equity commitment agreement, payment of fees and expenses and (ii) the rights offering procedures and related forms.
The objection asserts, “On April 12, 2017, the Debtors filed this motion…to sell New SunE Common Stock and New TERP Class A Shares for at least $213.75 million…The Debtors also seek Court approval to sell the Backstop Parties…additional shares of New SunE Common Stock and New TERP Class A Shares for an additional $71.25 million…Nowhere in the Motion, however, do the Debtors specify what they believe the New SunE Common Stock and New TERP Class A Shares are worth, either on a per share basis or in the aggregate. Nor do they specify the number of shares to be sold, or provide a total enterprise value for purpose of the Plan.”
In addition, “In other words, regardless of the actual value of the New SunE common stock and the New TERP Common Stock, the Debtors seek Court approval to sell 90% of the New SunE Common Stock and the New TERP Common Stock in a privately negotiated sale without competitive bidding for $285 million, even if that price is less than the actual value of the New SunE Common Stock and New TERP Common Stock.”
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