SunEdison to Sell Some Assets to GCL-Poly Energy -- Update
August 29 2016 - 10:19AM
Dow Jones News
By Chester Yung
HONG KONG -- GCL-Poly Energy Holdings Ltd., one of China's
largest makers of solar equipment, on Sunday said it agreed to buy
the solar materials assets of bankrupt U.S. renewable energy
company SunEdison Inc. for $150 million.
The Hong Kong-listed company said the acquisition includes
SunEdison's subsidiaries, which are SunEdison Products Singapore
Pte., MEMC Pasadena Inc. and Solaicx Inc., as well as SunEdison's
stake in a Korean joint venture, SMP Ltd. The acquisition excludes
MEMC's manufacturing facility in Pasadena, Texas.
The sale of SunEdison's solar materials business is the latest
in a series of transactions designed to raise money for creditors
of the troubled company. NRG Energy Inc. has offered a starting bid
of $144 million for a parcel of North American solar- and
wind-power projects, while an affiliate of Edison International's
SoCore Energy has offered nearly $80 million for a second parcel
going on the auction block in September, a collection of 22
commercial and industrial projects under development in
Minnesota.
Like the NRG and SoCore offers, GCL-Poly's offer will be tested
at auction, according to bankruptcy-court filings.
The solar materials business auction is slated for October,
assuming competing offers come in. SunEdison has been in talks with
potential buyers of the solar materials business for six months,
court papers say. Discussions with one prospective buyer of the
solar materials business date back two years, as SunEdison
deliberated exiting the business of making solar panels and solar
energy materials to focus on developing projects, according to
court filings.
The solar materials business involves the development and
manufacture of solar panels and solar components, using proprietary
SunEdison technology.
SunEdison sought chapter 11 protection in April amid legal and
financial trouble. Company lawyers say it is exploring a
reorganization, and it has been moving to sell off various
alternative-energy projects it built or which are under
development.
Earlier this month, SunEdison said it would seek
bankruptcy-court approval to pay up to $5.1 million in bonuses to
nine senior executives during its chapter 11 case. Many SunEdison
leaders departed when the company's problems erupted, including
former Chief Executive Ahmad Chatila.
Peg Brickley contributed to this article.
Write to Chester Yung at chester.yung@wsj.com
(END) Dow Jones Newswires
August 29, 2016 10:04 ET (14:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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