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  • The Sun Will Rise Again Tomorrow: Why SunEdison Is My Top Pick For 2016  [View article]
    From WSJ:

    Shareholders of a company that owns renewable energy projects in Chile and Peru have asked a New York court to lock up $150 million of SunEdison ’s assets, to protect what they expect to win in a fight over a failed deal with the troubled solar company.

    Investors in Latin America Power Holding B.V. said in court papers they’re going to win an arbitration fight against SunEdison over its failure to close a $733 million buyout last year, but they’re worried the assets won’t be there when it is time to collect.

    “We believe the lawsuit is without merit and we plan to vigorously contest it,” SunEdison spokesman Ben Harborne said.

    In court papers filed in New York Supreme Court Wednesday, the Latin America Power investors say SunEdison, which has suffered a “stunning financial collapse” in its stock price, is “teetering on the edge of bankruptcy,” and has allegedly said it would transfer assets away.
    Feb 10, 2016. 07:09 PM | Likes Like |Link to Comment
  • The Sun Will Rise Again Tomorrow: Why SunEdison Is My Top Pick For 2016  [View article]
    Scary new headline on the WSJ and Bloomberg. This involves TERP and SUNE, not GLBL:

    Latin America Power BV shareholders sued SunEdison Inc., claiming the world’s biggest clean-energy developer is on the brink of bankruptcy and trying to hide assets.

    The shareholders say they need a court order to protect SunEdison assets while they pursue a claim in arbitration for $150 million, which they say they’re entitled to after the U.S. company walked away in October from an agreement to buy Latin America Power.

    SunEdison has “defiantly declared” that it plans to hide its assets with undisclosed parties and affiliates in order to shield them from creditors as it sits on the brink of bankruptcy, the investors said in a petition filed in state court in Manhattan. SunEdison’s financial condition “is so dire and rapidly worsening” that analysts expect it to be insolvent by the time the arbitration might be decided, the shareholders said.

    Ben Harborne, a SunEdison spokesman, said in an e-mail that the company would fight the lawsuit
    Feb 10, 2016. 07:09 PM | Likes Like |Link to Comment
  • Terraform Global Provides Information Amidst Stock Plummet  [View article]
    Meat, great post. Thanks for the research. Was wondering about that exact issue. What is your time frame on GLBL and do you plan on holding very long? What would change your thesis?
    Feb 10, 2016. 01:39 PM | 1 Like Like |Link to Comment
  • Terraform Global Provides Information Amidst Stock Plummet  [View article]
    Thanks very much! Excellent article. Am very long GLBL myself and was very concerned at the recent severe decline. This certainly explains some, if not all of it. Another issue is that GLBL has no operating history and the entire MLP sector, which is similar, is highly distressed so many investors are bailing from similar vehicles. I think it will take at least a year or longer of solid returns before investors really come back in at this point. Yield investors are conservative, and the combination of huge losses in share price, collapse in SUNE, MLP market crash and rising interest rate environment is a perfect storm. Only way this will work out is to hold very long.
    Feb 10, 2016. 12:39 PM | 8 Likes Like |Link to Comment
  • SolarCity's Earnings Portend Gloomy Outlook For Several Solar Companies  [View article]
    Ener, I noticed you are long SEDG and SUNE. Curious as to why you are not long TERP or GLBL then?
    Feb 10, 2016. 11:54 AM | Likes Like |Link to Comment
  • Recent 8-K Confirms That Terraform Global 4Q CAFD Will Cover Full Quarterly Dividend Of $.275/share  [View article]
    Thanks Aurelian. And what do you think is happening with the collapse with GLBL? Today down yet another 7% and now UNDER $3 a share. Remarkable. Is this redemptions, investors fleeing because of the risk of a SUNE BK, currency related fears or a combination of all of the above? Right now, developing markets are in trouble so I guess much of this is investors now wanting to stay in those markets. I'm sure when you originally researched GLBL you never though in your wildest dreams that it would hit this price. Are you doubling down or waiting until the next quarter's results? I think much of this is also caused by the crash in the MLP space in stocks like KMI and ETE. Are you still long GLBL?
    Feb 10, 2016. 11:23 AM | Likes Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    I doubt that, especially in this environment. SEDG reported blow out numbers, was up 12% Afterhours and ended up less than 8% up in normal trading. Given the overhand over solar in general. I don't think it is too late but you could miss a 10% pop.
    Feb 4, 2016. 06:04 PM | Likes Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    Exactly - and the PRER14A makes that clear. You can tell they were twisting and turning to try and get out and couldn't without risk of a major lawsuit. Here is some relevant language:

    On October 22, 2015, f... SunEdison’s audit committee had not approved the filing of the Proxy/S-4 and that SunEdison did not intend to file the Proxy/S-4 that day due to concerns egarding the financial...
    SunEdison and Vivint S...

    On the morning of Octo... the previous day’s discussions and to convey to the Board Mr. Chatila’s request for a meeting. At the invitation of the Board, representatives of Vivint Solar’s
    management and Wilson ...
    address any issues tha...
    reaction to SunEdison’...
    the original Merger Ag...
    should engage with Sun...
    prepare for litigation...
    Feb 3, 2016. 07:31 PM | Likes Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    Look at page 61 of the PRER14A on Vivint's web site. Lays out all of the gory details of this disastrous deal.
    Feb 3, 2016. 06:37 PM | Likes Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    Wow - Feel for you. Have taken huge losses myself relative to my portfolio - after having fantastic profits from SUNE earlier in 2015. You are very smart and objective and I appreciate your posts. I agree that management's credibility is totally blown and I hope that the CEO's days are numbered. Did you read Bronte Capital's blog post on what is needed for SUNE to survive? We need a boring company with a very strong risk management oriented CEO, not a "visionary" like Chatila with no corresponding sense of risk.
    Feb 3, 2016. 06:18 PM | 1 Like Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    Muishin is right - based on the reading of the deal from very smart analysts like EnerTuition and others, there is no language in the merger agreement that gives SUNE an out. They could have put something in the agreement, for example, that if their stock dropped by more than 50% from the time of the deal to the closing that the deal could be cancelled but they didn't. It was extraordinarily reckless and terrible risk management. So the worse penalty is potentially the entire price of the deal - the termination fee is VSLR's if they can find a better deal, which they won't.
    Feb 3, 2016. 06:13 PM | Likes Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    Sorry, but he is right. IT's called "specific performance" in legal jargon. Basically, they would have to prove in court that SUNE violated the terms of a signed contract and caused significant damage to the company that can only be repaired by going through with the deal. It would be a law suit

    "Specific performance is an order of a court which requires a party to perform a specific act, usually what is stated in a contract. It is an alternative to awarding damages, and is classed as an equitable remedy commonly used in the form of injunctive relief concerning confidential information or real property."
    Feb 3, 2016. 01:05 PM | 3 Likes Like |Link to Comment
  • Did SunEdison Underestimate The Cash Component Needed To Close The Vivint Solar Deal?  [View article]
    Morningside, thanks for your excellent analysis here. I take it, given the terrible binary risk of this law suit, that you are no longer long SUNE? Are you still long TERP or GLBL?
    Feb 3, 2016. 11:08 AM | 1 Like Like |Link to Comment
  • Grandfathering Proposal May Only Be A Short-Term Reprieve For SolarCity  [View article]
    HI Ener, good thoughtful article as always and very educational. I know that you are long SUNE. Is the Vivint business model similar to the SCTY business model in relying on PPA's for generating revenue? I take it from your dislike of the this model that in your opinion the VSLR assets are worth very little. Recently, SCTY was able to securitize them at $1.50 a watt. What does that say about the value of these assets? Also, is there any value to SUNE of the VSLR assets in your opinion or is the entire transaction mostly a loss? If so, am curious why you would still stay long SUNE. Thanks
    Feb 2, 2016. 06:51 PM | Likes Like |Link to Comment
  • Vivint Solar Files Its Proxy Statement For The SunEdison Acquisition  [View article]
    I'm afraid this was totally wrong. SUNE down over 7% today while market and oil is up. Must be related to this news.
    Jan 28, 2016. 03:24 PM | 1 Like Like |Link to Comment
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