22nd Dec 2015 11:54
LONDON (Alliance News) - Leaf Clean Energy Co on Tuesday said it has filed a court complaint in the US against portfolio company Invenergy Wind LLC, seeking payment of USD126.0 million over allegations that Invenergy did not seek Leaf's consent for the sale of power generation facilities to TerraForm Power Inc.
Invenergy develops, owns and operates wind power generation facilities in North America and Europe. In July it agreed to sale of around 930 megawatts of contracted wind power generation facilities for USD2 billion to TerraForm Power.
Leaf owns a 2.3% stake in Invenergy, and said that its investment in Invenergy is governed by an operating agreement. Leaf asserts that under the terms of this agreement, Invenergy was required to either obtain Leaf's consent for the proposed sale prior to its consummation, or in the absence of this consent, make a payment to Leaf on the closing of the sale.
The TerraForm sale closed on or before last Wednesday, Leaf said.
Invenergy has informed Leaf it does not believe that it is entitled to the payment in relation to the TerraForm sale, and as a result Leaf expects Invenergy to contest its complaint. Leaf noted there can be no assurance that it will prevail in court, or how long proceedings will take.
The complaint was filed in the Delaware Court of Chancery in the US state of Delaware.
Shares in Leaf were down 5.4% at 35.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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