TommyBoyTrader

[PRAYFORME]

Maintaining Our SunEdison Inc (OTCMKTS:SUNEQ) Long Bias http://tinyurl.com/hxl...

"Now, there’s the potential for an appeal on a court decision to turn down an EC, and we think this potential is playing into the SunEdison uptick. Breitburn Energy Partners LP (OTCMKTS:BBEPQ) just had its own EC approved based on the rising value of oil, and the impact this has on its asset valuation when compared to its valuation at bankruptcy filing time.

Some of SunEdison’s assets (most notably its majority owned yieldcos, TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL)) have both increased in value since filing, and this opens up the possibility for an appeal based on a similar approval factor as that of Breitburn.

If an appeal is successful, Sunedison shareholders can pick up a seat at the table and argue their case for a return. Any increased level of return would add value to the current worth of the share base, and that’s where the upside potential lies.

Bankruptcy aside, however, there’s a secondary potential for a long term upside – a clean emergence from the process. The company is attempting to restructure its assets by way of a reorganization plan that would see it maintain its controlling stake in the above mentioned TerraForm Power. If it can achieve this maintenance, the company would come out of the process as the parent of TerraForm, with no assets outside the latter, but owning what looks right now to be a very successful commercial and residential solar and wind power asset – one currently valued at the open market at a little over $1.8 billion. As of the most recent filings, SunEdison owns circa 35% of TerraForm Power, and controls just shy of 85% of voting rights by way of its Class B shareholding."