Company says operations in India not at all involved in the Chapter 11 bankruptcy filing process in US
Putting up a brave front, energy major SunEdison Inc, on Friday said that its filing for bankruptcy protection in the US will not have any impact on company’s India projects. SunEdison said that the operations in India is not at all involved in the Chapter 11 bankruptcy filing process and its business in the country will continue unhindered.
The company said that it will be able to rope in partners for its committed 1.7 GW of projects in a period of one or two months.
Speaking to FE from the US, Pashupathy Gopalan, president of SunEdison Asia Pacific said that the bankruptcy filing by the parent company is essentially a Chapter 11 filing and it is not the same as Chapter 7 which is meant for liquidation of the company.
“The Chapter 11 is for the process of restructuring and re-organising of the debt. The creditors and lenders have filed for the bankruptcy protection. It is not as same as filing for Chapter 7 which is basically for liquidating the company. This is a very very different process. The primary objective of this to reorganise the balance-sheet which will enable the company to move forward with a right-sized balance-sheet,” he explained.
Allaying the misconception about the bankruptcy filing, he said that even in this situation the company would be getting an additional funding of $300 million from a consortium of of senior lenders.
“They are giving us support because they believe that the company can continue its operations. In India, we will continue our business in normal course. I must say that the Indian team had earned tremendous credibility in the last 6 to 7 years, building pioneering projects out here. No only that the Indian team had been responsible for projects in markets such as South Africa, Japan, Philippines and Thailand,” he said.
Gopalan said that the Indian team had the experience of developing more than 1 GW of operational projects and has the potential of further develop 4 to 5 GW project.
“The experience of Indian team is invaluable. So far, in the Indian market, we had developed 700 MW of projects. In solar, it is probably among the top layers and we have another 1.7 MW of GW to develop which is again a very interesting matter. The Indian government has done such a good job of setting up an ambitious and very clear goal as far as renewable energy was concerned,” he said.
According to Gopalan, with government creating good eco-system, lot of people have evinced interest to step into Sun Edison’s platform for becoming equity partners in the company’s projects.
“We are happy to explore dialogues for partnerships either at project level or at full India platform level. It is a golden opportunity for investors who want to enter India with strong partnerships,” he said.
Reiterating that the bankruptcy filing will not cast any shadow over the prospectus of forging partners in India Gopalan said that the new development will further more boost the possibility of getting investors for the project.
According to a company release on Thursday, SunEdison had filed its restructuring under chapter 11 of the US Bankruptcy Code. A bankruptcy filing under chapter 11 (a chapter of title 11 of the United States Code) permits Sun Edison’s reorganization under court supervision while the company continues to operate in the ordinary course, consistent with the agreement reached with its debtor-in-possession lenders, in order to maximize value for all stakeholders.
Sun Edison’s management will remain in control of its day-to-day business operations and its assets will be subject to the court’s jurisdiction.