SunEdison Inc., the bankrupt Maryland Heights-based renewable energy developer, on Monday confirmed it’s in talks to settle claims by its yieldcos, TerraForm Power Inc. and TerraForm Global Inc.
The TerraForm companies released information Sept. 25 on claims they say are related to SunEdison’s interference with their respective businesses, alleged breach of fiduciary duty and their loss of business opportunities and increased costs suffered as a result of SunEdison breaching agreements with them. Sources told Bloomberg last week that the parties were in talks to settle the some $3 billion in claims.
SunEdison said in a release Monday that while it disagrees with many of the claims and allegations made by the yieldcos, it has begun settlement discussions related both to their claims against SunEdison, as well as “meaningful claims” SunEdison is reviewing and might assert against the TerraForm companies.
Jack Stark, chairman of the corporate governance and conflict committee of both yieldcos’ boards, said in statements last week that the companies are prepared to litigate their claims against SunEdison but resolving them in the courts “would be complicated and expensive,” so a settlement is in the best interest of the parties.
Read more: St. Louis Business Journal