I think you need to study up on how these projects are developed, namely the capital intensive nature involving non-recourse project debt, equity partners and tax equity. SUNE took on too many projects with no cash to finish developing them. This was one of the root causes of their demise. They went on a leveraged buying spree in 2015 thinking RE will be booming, but when energy prices crashed, they were not able to obtain financing or find willing equity partners to develop new projects. Meanwhile, these development projects were bid on by SUNE with commitment to finish by a certain date or the PPA contracts will be nullified. That's essentially what happened, 3rd parties and yieldcos stopped offering high prices for completed projects that can make back the costs of developing them, so SUNE stopped developing. Without cash from asset sales, they could not stay in business as a devco. A lot of the assets purchased by NRG are non-performing assets because they couldn't be completed by the contracted dates. They are worthless now as NRG decided it wasn't worth expending capital to develop the ones that SUNE haven't even started development on. That's why they're trying desperately now to sell their renewable assets. NYLD can no longer buy the completed projects at an acceptable price to NRG due to the high cost of equity. Same with Greenko, the Indian assets required a tremendous amount of new capital to develop, which is why SUNE only netted $10M in cancelled LCs for more than $1B of potential enterprise value of the deal.
So how can SUNE fund the billions of future project development with their existing cash and no employees? If they want to restart the development business, they will need at least $2B in financing from new debt and or equity. If you were a lender, what kind of rates would you offer to the new SUNE? If you were a new equity investor, how much would you pay for each share of SUNE? All the time knowing there are still class action lawsuits against the company and billions of litigation risk from Vivint. I think that will answer the question whether they can still be a viable devco again. There's no value left in the shell company to protect other than their equity stakes in the non-debtor subsidiaries. Hopefully, the revised disclosure statement will provide an idea of how much value there is left in the subs.
