The U.S. Bankruptcy Court approved SunEdison’s motion for an order authorizing and approving the directors and officers (D&O) mediation settlement agreement and D&O insurance cooperation agreement.
As previously reported, “SunEdison faces dozens of lawsuits involving claims by shareholders or investors against SUNE, the Yieldcos and their respective present and former directors and officers, all of whom claim coverage under the D&O Insurance….The mediation did not resolve all the pending litigations before the stay expired (although negotiations are continuing). But on March 27, 2017, the Debtors, the Committee and SUNE directors/officers named as the Individual Defendants in the Proposed Claims agreed in principle to the terms of the D&O Mediation Settlement Agreement, including a payment to the Debtors of $32 million from the D&O Insurance (which the insurers have agreed to fund), as provided in the D&O Mediation Settlement Agreement, and an exchange of releases between the settling parties. Because of their shared interests in the D&O Insurance, the Yieldcos’ consent to the payment required by the D&O Mediation Settlement Agreement is necessary to facilitate that settlement.”
In addition, “Therefore, also on March 27th, the Debtors, the Yieldcos and certain of their insured directors and officers entered into the D&O Insurance Cooperation Agreement, as amended June 6, 2017, in which the Yieldcos so consented and, for a specified period, SUNE consented to potential settlements of certain actions in which the Yieldcos and their insured directors/officers, among others, are defendants funded by up to $32 million of proceeds from the D&O Insurance.”
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