Terraform Global, SunEdison’s emerging market yieldco, has cancelled a 326MW deal in Central America.
In a statement to the stock exchange, the company said that the wind and solar projects covered by the agreement with Globeleq Mesoamérica Energy (GME) had not received consent from the project lenders as of the deadline of 12 March. Under the terms of the contract, Terraform Global decided to cancel the deal. The deal also included a development pipeline that was to be sold to its struggling parent company SunEdison.
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Had the GME deal been completed, TerraForm Global would have paid out US$337.9 million in cash and 701,754 shares plus further add-ons. The money will now be made available for “general corporate purposes”.
SunEdison agreed the deal for GME prior to the launch of the Terraform Global yieldco which floated on the stock exchange in August 2015.
Since its financial difficulties began to bite, SunEdison has cancelled several deals including a stake in Brazil’s Renova Energia and the acquisition of developer Latin America Power (LAP). It paid US$28.5 million to settle a dispute with LAP over the deal.
US residential installer Vivint Solar pulled out of a proposed merger with SunEdison.
More results delays
Following the announcement that SunEdison's annual report would be delayed beyond the 15-day grace period permitted by SEC rules, Terraform Power, the domestic-focused yieldco revealed that its annual report would also now be delayed.
“Due to our management services arrangement with SunEdison under the Management Services Agreement, our financial reporting and control processes rely to a significant extent on SunEdison systems and personnel,” a statement from Terraform read. “As a result, if there are control deficiencies at SunEdison, including with respect to the systems we utilise, it is necessary for us to assess whether those deficiencies could affect our financial reporting and, if so, address them to the extent necessary and appropriate prior to filing our [annual report].”
