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UPDATE 1-Appaloosa sues to block SunEdison unit from buying Vivint assets

Published 2016-01-13, 10:21 a/m
© Reuters. UPDATE 1-Appaloosa sues to block SunEdison unit from buying Vivint assets
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(Adds details, background, shares)
Jan 13 (Reuters) - David Tepper-led hedge fund Appaloosa
Management LP sued to prevent SunEdison Inc's SUNE.N yieldco
from taking over some of Vivint Solar Inc's VSLR.N assets
after SunEdison acquires the rooftop panel installer.
The yieldco, TerraForm Power Inc TERP.O , is to acquire
Vivint's residential solar rooftop portfolio after SunEdison
completes the Vivint transaction.
Appaloosa is seeking "immediate injunctive relief", given
that SunEdison's acquisition of Vivint could close "at any
time," the hedge fund said in a filing in a Delaware court on
Tuesday.
SunEdison shares fell about 10 percent in morning trading,
while TerraForm Power's shares rose about 2 percent.
Appaloosa has repeatedly said the acquisition of Vivint's
assets by TerraForm Power was not in the interest of the
yieldco's shareholders.
Funds affiliated with Appaloosa together owned 9.5 percent
of the outstanding class A shares of TerraForm Power as of
December.
Appaloosa demanded to inspect TerraForm Power's books to
learn more about its dealings with SunEdison, a request that the
yieldco rejected in December.
"Although Appaloosa served a revised demand and was
attempting in good faith to resolve the company's objections, it
has thus far been unable to do so," Appaloosa said.
SunEdison, which agreed to buy Vivint Solar in July, said in
December that TerraForm would pay about $799 million for
Vivint's portfolio, lower than the initial purchase price of
$922 million.

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