SunEdison Gives Greenlight Capital Board Seat
January 27 2016 - 8:20AM
Dow Jones News
SunEdison Inc. said Wednesday that it has agreed to give David
Einhorn's Greenlight Capital a seat on its board and amend its
corporate governance policies following a collapse in the
solar-power company's stock price.
Claire Gogel, a former partner at Greenlight Capital, has been
appointed an independent director, effective immediately. She will
join SunEdison's nominating and corporate governance and investment
committees.
The Wall Street Journal reported that the parties were near an
agreement over board representation earlier this week.
SunEdison also agreed to amend its bylaws to prohibit the
company from issuing equity without a supermajority vote from its
board for a period of two years. The change will go into effect
after it closes on its planned acquisition of Vivint Solar Inc.
Until then, it will consult with Greenlight about equity
issuances.
The agreement gives Greenlight a greater say in one of its most
problematic investments. SunEdison has slashed jobs, sold assets
and raised new debt amid a sharp decline in its share price since
July that fueled investor concerns about its liquidity and the
durability of its business model.
Shares of SunEdison, down 48% in the past month, added 1.3% in
premarket trading.
Liz Hoffman contributed to this article.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 27, 2016 08:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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