Investors Win Restraining Order Against SunEdison
February 11 2016 - 3:30PM
Dow Jones News
A New York judge Thursday issued a temporary restraining order
barring troubled solar developer SunEdison Inc. from making any
unusual moves with its assets pending a showdown with unhappy
investors in a Latin America venture.
The temporary restraining order, or TRO, from New York Supreme
Court Justice Charles E. Ramos will stay in place until a Feb. 25
court hearing in a lawsuit brought by investors in Latin America
Power Holding B.V. against SunEdison in connection with its failed
buyout of Latin America Power.
The TRO bars SunEdison, its holding company and Terraform Power
Inc. affiliate from "concealing, transferring or removing their
assets, accounts or other property that may be subjected to
attachment," except for fair value and in the ordinary course of
business, court papers show.
Justice Ramos said he didn't want to interfere with SunEdison's
ability to operate its business as usual but wanted a temporary
standstill on actions that are out of the ordinary, according to a
person present at the hearing in the New York Supreme Court.
A spokesman for SunEdison wasn't immediately able to comment
Thursday on the ruling, which grew out of legal action initiated by
shareholders in Latin America Power, a developer of alternative
power projects in Chile and Peru that SunEdison had agreed to
buy.
After the deal fell through, Latin America shareholders
initiated arbitration and ultimately turned to the New York court,
afraid SunEdison's mounting financial troubles create a risk that
it won't be able to cover a potential $150 million loss in
arbitration.
A SunEdison spokesman has said the lawsuit's allegations are
"without merit."
Write to Peg Brickley at peg.brickley@wsj.com
(END) Dow Jones Newswires
February 11, 2016 15:15 ET (20:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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