Based on my review of TERP’s March 2015 IPO, SUNE cannot dispose of its ownership of the Class B shares until the earlier of the IPO three-year anniversary date (March 2018) or TERP’s payment of 4 consecutive quarters of premium dividends plus all arrearages (not going to happen). Since SUNE pledged all of its Class B shares to the secured lenders, the lenders will not be able to monetize the value of those shares via SUNE’s outright sale (without a huge discount to the market price). Therefore, it is most likely, IMO, that SUNE gets reorganized as a going concern with the sole function of owning the yieldcos’ shares, the company is recapitalized as a private company with the DIP lenders as the sole owners, and the new owners will have to rely on any periodic repayments until they are able to sell their ownership of the new SUNE when the Class B Shares Subordination Period lapses.
