SunEdison filed with the U.S. Bankruptcy Court a motion for (i) an order (a) approving bidding procedures for the sale of equity interests in certain North American utility project companies, (b) establishing notice procedures and approving the form and manner of notice thereof, (c) scheduling a sale hearing and (ii) an order approving the sale of equity interests in certain North American utility project companies free and clear of all liens, claims, encumbrances and other interests.
The motion explains, “The Debtors’ highest priority in the Chapter 11 Cases is to maximize the value of their estates for the benefit of their creditors and other stakeholders. To that end, the Debtors believe that the Purchase and Sale Agreement, secured after extensive negotiations with a sophisticated, well-informed third party, serves as a compelling offer from the Buyer to serve as a Stalking Horse Buyer for the Equity Interests. Specifically, the Purchase Price in the Stalking Horse Agreement is for $144 million, which amount shall be allocated and payable at the applicable Closing in proportion to each Package, plus certain…Critical to the Stalking Horse Buyer’s agreement to enter the Stalking Horse Agreement, the Sellers have agreed to pay the Stalking Horse Buyer…up to a maximum amount of $4,500,000 (the ‘Expense Reimbursement’) and (b) $5,500,000 (the ‘Break-up Fee,’ and together with the Expense Reimbursement, the ‘Bid Protections’), upon the occurrence of entry into an Alternative Transaction, as set forth in the Purchase and Sale Agreement.”
The deadline to submit bids for the Debtors’ assets shall be September 6, 2016. If at least one qualifying bid is received for the purchase of the Debtors’ assets by the bid deadline, an auction will be conducted on September 9, 2016 followed by a sale hearing on September 15, 2016. The Court scheduled an August 18, 2016 hearing to consider the motion. Read more SunEdison bankruptcy news.
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