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SunEdison Bankruptcy Objection Filed

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SunEdison’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ motion for order authorizing post-petition indemnification of J.P. Morgan Securities (JPM) as financial advisor to the Tranche B lenders/steering committee.

The committee asserts, “Based on the information provided thus far, the compensation and indemnification proposed in the Indemnification Motion appear to promise J.P. Morgan Securities LLC (‘JPM’) payment for services that appear duplicative of other financial advisors in these bankruptcy cases, and also to guarantee it an even bigger payment in a scenario in which JPM would at most render services no more extensive than those anticipated in the active YieldCos sale process. For the reasons explained below, JPM’s contemplated fee – between US $4 to US $8.5 million, depending on how Terraform Global (‘GLBL’) and Terraform Power, ‘TERP,’ collectively, the ‘YieldCos’) are sold – appears unreasonable relative to JPM’s contemplated scope of work and is not authorized by the Final DIP Order, the DIP Credit Agreement, or bankruptcy law. Pursuant to the proposed engagement with JPM, in the event that YieldCos are sold as part of the current sales process involving Brookfield Asset Management (‘Brookfield’), JPM would obtain a guaranteed US $4 million.”

In addition, “It is unclear what work JPM has performed or may perform to justify this fee – or why the Debtors should reasonably obligate themselves to indemnify it. The lack of sufficient detail raises significant questions in light of the facts that: (1) JPM did not arrange, broker, or underwrite the contemplated transaction; (2) JPM does not represent either the buyer or the sellers in the transaction; and (3) the YieldCos sales process had already been launched by other retained professionals before JPM even began providing its purported services. Most of the services contemplated by the JPM engagement appear to have nothing to do with the current YieldCos sales process, and the fee structure appears intended to reward JPM if the current sales process is disrupted in favor of an alternative transaction.”

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The post SunEdison Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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