From the new WSJ article:
Vivint wants to restart the case, if only to put a firm number on its bankruptcy claim.
According to Vivint, the lawsuit is worth $1 billion, making Vivint the single largest unsecured creditor in SunEdison’s bankruptcy.
With SunEdison, according to its lawyers, “hopelessly insolvent,” Vivint’s claim ranks near the end of the line of creditors hoping to be paid and payment in full is unlikely. However, getting a court order locking in a $1 billion damages claim in the lawsuit would give Vivint $1 billion worth of leverage and voting power when it comes to deciding SunEdison’s fate.
SunEdison has yet to decide how it will tackle its $8 billion debt load and has begun piecemeal sales from its portfolio of alternative energy projects under development. The company grew through deals, stacking up debt, but investors began backing away around the time the Vivint deal, valued at about $1.9 billion. was announced in July 2015.
Could be. Nice to see BAM taking a huge position in TERP. Clearly, some smart investors still see these yieldco's as way undervalued due to the SUNE BK. Am still going to hold
They are massive btw - $240 billion under management. I've decided to increase my small position as a result. I think they see that longer term - say in a year - when it comes out of this SUNE mess, it will get repriced much higher
Brookfield Asset Management ( BAM ) discloses a nearly 25% stake, including derivatives, in the noncontrol shares of power-plant holding company TerraForm Power ( TERP) , a subsidiary of bankrupt SunEdison (SUNE). BAM, a $240B asset manager that operates a renewable-energy arm, says it is trying to acquire the control shares owned by SUNE, which filed for bankruptcy earlier this year under the weight of a debt-fueled acquisition binge. It controls TERP and a sister vehicle through a special class of shares. TERP rises 10% to $9.65.
Yep, glad to see someone thinks that longer term TERP has potential. Still have a small stake but took huge losses here and in the SUNE complex in general. What a mess.
Well, Brookfield Asset Management disagrees with you. They just disclosed a massive 12.3% stake and the stock is popping 10% on the news. Good luck with your short.
Interesting - from SA:
A big swing vote from an unknown investment firm
However it could be Baillie Gifford, one of the United Kingdom's largest independent active investment firms, that controls the merger's fate. Baillie Gifford was founded in 1908 in Edinburgh and manages 123 billion pounds ($191 billion). As of March 31 it owned 11.929 million Tesla shares or 11.66% of the shares voting on the merger.
If it agrees to the merger Tesla will need 55 million votes out of the remaining 90.4 million shares or 60.8%. While the company will still need more than 50% of the rest of the shares having Baillie Gifford vote yes could sway others.
If it does not agree Tesla could have a very tough time getting approval since it will need 74% of the remaining shares to agree (66.928 million divided by 90.4 million shares).
Probably explains the strong price action recently. Am guessing that after the X date, it will decline somewhat.
Defilip, me too. Am up around 13% so far and have not even started collecting dividends. Like you I plan on holding for years or decades unless there is some fundamental change. Am also long HASI which is doing well too. Both offer solid dividends. Have a speculative position in GLBL that I think could easily be a double from here once it is separate from the SUNE mess. That could take a while though. Good luck with your investments, and if you find any other good research on PEGI, please post it.
Doubt it - Elon owns 20% of the company! And many insiders know that the SCTY business model has problems and requires huge on going infusions of cash it its ever going to work.
Oppenheimer questions what Tesla (TSLA) gets from its $2.8B stock bid for SolarCity ( SCTY ) . While it alleviates financial concerns at SCTY "we struggle to see the benefit to TSLA other than potential leverage on its retail stores." Oppenheimer also expects a "robust shareholder fight," centered on corporate governance." Although Elon Musk has recused himself, he's still chairman and the largest shareholder of both companies. His cousin is the CEO of SCTY. Oppenheimer thinks investors likely view the deal as a "bailout for SCTY." It cuts TSLA to perform from outperform. TSLA off 6.6%, while SCTY gains 8.5%
Hillary is going to win, and she is going to be very pro solar and very anti big oil - you can bet on that.
Yes, that's the big big question. NO guarantee that Lithium Ion will win out longer term. But one of the many things that TSLA has done has spur a massive amount of investment and thinking into batteries, and they have also developed a huge amount of IP around how to improve LI ON batteries and are ahead of the rest of the market currently. Here is an excerpt from a recent Bloomberg article about this very issue. One thing's for sure - the days of ICE cars are numbered and with it the global oil markets. Just a question of when.
Musk said last year that his company was tracking about 60 different efforts around the world to develop better batteries. "We rate all of them from one to five, where five is we should be doing business with them and one is complete BS," Musk said, adding that he knew of no "fours" or "fives," just some "threes." He expressed confidence that if any disruptive technology emerged, it would be offered to his company.
It's hard to justify that confidence. Bigger car manufacturers have deeper pockets, and, unlike Tesla, which is using stock to buy Solar City, they are cash-rich. Besides, for a truly disruptive battery tech company, there would be a strong temptation to license its technology to several carmakers or raise money to make the batteries on its own. A small firm -- like Spain's Graphenano, for example -- could emerge as the owner of the intellectual property that allows for cheap energy storage and fast charging, and it might prefer to own the market while it can rather than work with Tesla the way its current battery partner, Panasonic, does.
A breakthrough, of course, is not guaranteed. It's more likely that, for the next few years at least, similar technology will be available to several companies.
Not necessarily. I have traded in and out of TSLA. I understand that its shares are richly valued but unlike you I also understand that no other company has the potential to transform our economy longer term than TSLA. And successful investors like Baron think so as well. He has invested hundreds of millions in this company and thinks it has the potential to be worth 10x in 10 years time. He visits the factory regularly and knows the company intimately. There are sophisticated investors, not bleeding heart liberals, who are heavily invested. To ignore them is simply to succumb to your own biases. But please, continue to put your money into coal stocks. I love it when conservatives get wiped out because of their rigidity and stupidity.
It's a tall order, but the business opportunity is massive for the company that can do it. Musk is certainly better positioned than most and if he succeeds, he will be perhaps the most influential and successful entrepreneur in US history. But a lot has to go right:
Trader Brian Kelly said that Tesla Motors' bid for SolarCity indicates that "Elon Musk doesn't view Tesla as an auto company."
He explained that while Tesla is selling electric vehicles at the moment, there have been signs that its CEO, Musk, has been intending to do more.
"If you look at what he's doing with the Gigafactory, you look at this acquisition, he's clearly going after the decarbonization of the electric grid in the U.S. To me, that's the bigger play in all of this," Kelly said.
Trader Karen Finerman said that Tesla's offer, valued up to $28.50 per share, "doesn't seem like a gigantic price for a company that was trading significantly higher not that long ago."
Don't remind me :( However, that was done purely because of reckless financial engineering. TSLA's stock is valuable so it's a possible good use of highly valued shares. But like many deals, it could also be seen as wealth destroying. Certainly many deals are failures and I don't blame anyone for being skeptical.
TSLA said that there are strong synergies and that a broader company will have better luck penetrating the market. Who knows - so many mergers don't work out but that's the spin. The deal is valued at 2.8 billion. I do like Musk's vision but it's also true that Solar City's business model is under a lot of pressure. I do think that TSLA will be able to gain access to capital more easily for this business than Solar City on its own. Eventually, TSLA could become one of the biggest energy companies on the planet.
In the short term, there will be lots of people selling Tesla because they don't like this deal - if it goes through. But it's possible that in the long term there could be strong synergies. We'll have to wait for further details on this deal, but the coming dip will be a good time for TSLA longs to buy more shares. I'll be buying more. Every time this stock has dipped under $200 it has eventually rallied. The dip to $150 recently was a great time to buy.