Some folks are saying that the Yieldco with Maine wind assets ,Terraform Power, should not be at risk.......HUM..... (these are the wishful thinkers) I beg to differ.
As the bankruptcy of SunEdison proceeds, everything will be up for grabs .
Are Maine town payments from First Wind projects as well as their lease holders at financial risk?
"Rigrodsky & Long, P.A. reminds shareholders of TerraForm Power, Inc. (“TerraForm” or the “Company”) (TERP) of an upcoming deadline involving a securities fraud class action lawsuit commenced against the Company." June 3 deadline
(any Maine legislators who bought TERP have a week to try and get some of their money back , if possible).
The unknown risk facing TerraForm Power
If anything truly catastrophic is going to happen to TerraForm Power, it'll happen in the next few months. When a yieldco's parent or sponsor company goes bankrupt, it can lead to cross default on debt or changes to power purchase agreements. The problem is, many of these details are confidential until they're disclosed to investors, usually after its too late.
Moody's VP and Senior Credit Office said this after downgrading the company's debt:
[O]ur rating incorporates a low but not negligible probability that one or both yieldcos may eventually end up in bankruptcy proceedings as a result of a SUNE bankruptcy.
That may sound cryptic, but that's intentional. There may be risks hidden in TerraForm Power that we don't know about yet.
Watch out below !