Scalper1 News
Brian Wuebbels late Wednesday stepped down as CEO of TerraForm Power ( TERP ) and TerraForm Global ( GLBL ), as parent company SunEdison ( SUNE ) is on the brink of default. Both TerraForm Power and TerraForm Global said the respective board of directors had formed an “office of the chairman” to run the concerns on an interim basis. Meanwhile, David Tepper’s hedge fund, Appaloosa Management, which owns 9.5% of Terraform Power, sued the yieldco and SunEdison in Delaware’s Chancery Court, demanding that TerraForm overhaul its Conflicts Committee, claiming controlling shareholder SunEdison has breached its fiduciary duties. Appaloosa Management in January sued SunEdison, saying it violated its fiduciary duties as it pursed its now-defunct effort to acquire Vivint Solar ( VSLR ). Also late Wednesday, S&P Dow Jones Indices said that WebMD Health ( WBMD ) will replace SunEdison the S&P MidCap 400, saying SunEdison no longer has a market cap to qualify for the index. Earlier, JPMorgan downgraded TerraForm Global, while FBR suspended coverage of the “unpredictable” SunEdison. SunEdison hasn’t released financials for beyond Sept. 30 and is in danger of default. Late Tuesday, TerraForm Power said there was “substantial risk” of a SunEdison bankruptcy, which might make its own talks with creditors “more difficult.” SunEdison stock plunged as low as 45 cents on Wednesday, but closed up 2 cents to 59 cents. TerraForm Power fell 2.7% to 8.38 but rose 3% late. TerraForm Global climbed 7.4% to 2.18, then advanced 7% in late trade. Vivint Solar rose 6 cents to 2.62. Scalper1 News
Scalper1 News