SunEdison R.O. Amendments Proposed


SunEdison filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing and approving certain amendments to the Company’s rights offering procedures.

The motion explains, “On July 14, 2017, the Debtors and Backstop Purchasers amended the Equity Commitment Agreement to (1) extend the outside termination date from September 30, 2017 to November 15, 2017 and (2) increase the minimum Total Equity Commitment to $300 million as the fully committed amount….The Backstop Purchasers’ accommodation – a two-month extension of and $15 million increase in the minimum total commitment amount – was made at no additional monetary cost to the Debtors or their estates to address the Debtors’ updated financial projections and expected timing to close the Jointly Supported Transactions and effectuate the Plan.”

In addition, “In return for such accommodation, the Debtors agreed to extend the date by which the Backstop Purchasers will fund their capital commitment into escrow to a date that is closer to the Effective Date. The Debtors, in their business judgment, believe that an extension of the funding date (while preserving a fully backstopped commitment) is consistent with bankruptcy backstop commitments by not requiring the Backstop Purchasers to tie up significant sums of money for three to four months in an account bearing minimal interest.”

The motion continues, “Specifically, the Debtors seek to (1) extend the date by which the Rights Offering participant must submit funds to the Escrow Agent (the ‘Rights Offering Expiration Date’) to participate in the Rights Offering and (2) allow those Rights Offering participants who already funded their elections to receive their money back, if they elect, and participate closer to the amended Rights Offering Expiration Date.” The Court scheduled an August 3, 2017 hearing on the motion.

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