Stocks:

SunEdison concedes to Greenlight’s demands

A former partner at Greenlight Capital, Claire Gogel will represent the hedge fund as an independent director, after calls for changes to SunEdison’s business strategies and over extended growth plans created short-term financial issues for the renewables firm.

Troubled renewables firm SunEdison has granted US-based hedge fund Greenlight Capital a seat on its governance committee and the finance and investment committee of its board of directors.

A former partner at Greenlight Capital, Claire Gogel, will represent the hedge fund as an independent director, after calls for changes to SunEdison’s business strategies and over extended growth plans created short-term financial issues for the renewables firm. 

SunEdison also said that would amend its bylaws that made it impossible for the company to raise equity without a ‘supermajority’ vote of the Board for the next two years. 

However, this would not include the pending acquisition of Vivint Solar, indicating some compromise was made between the parties. 

Emmanuel T. Hernandez, executive chairman of the board of SunEdison, said: "As we work to navigate current market conditions, we are very pleased that we will have the benefit of tapping the expertise of a highly-qualified director endorsed by a significant shareholder. We also believe that the new bylaw amendment makes clear our unequivocal commitment to SunEdison and its common shareholders."

SunEdison has lost over 80% of its listed share price in the last six months due to its aggressive expansion plans and financial woes as a result. 

Tags: sunedison, yieldco

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