Judge Approves $1.3 Billion Loan for SunEdison Inc
Last week, a judge approved a loan that will help SunEdison maintain operations during its bankruptcy proceedings. With 1,000 global operations and about 3,000 workers, the $1.3 billion operating loan will prove to be a necessity.
The funds won’t just be used to keep its doors open. A part of the $1.3 billion loan will be used to pay for a probe by creditors to look into its financial activities and wrongdoings. The findings will likely affect the outcome of the lawsuit.
“Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues,” said Ahmad Chatila, SunEdison CEO, in a press release. “As a result of this process, we expect that SunEdison will be in an even better position over the long term to utilize our capabilities in the renewable energy sector.”
Due to more than $16 billion in debt, SunEdison filed for Chapter 11 bankruptcy protection in late April. It filed in Bankruptcy Court for the Southern District of New York. Despite its filing, SunEdison will sustain operations, while its yieldcos will be unaffected.
Its restructuring agent is in the process of selling off its more than 500 assets. Reports suggest that SunEdison may already have buyers in Hawaii and India. Funds generated from the sale of its assets will be used to pay back its creditors and lenders.