SunEdison Surges On Settlement With TerraForm

Shares of SunEdison Inc SUNE surged more than 18 percent after the renewable energy firm announced a settlement with TerraForm Power Inc TERP over the termination of SunEdison's acquisition of Latin America Power.

The financial terms of the settlement include total payment of $28.5 million to be made by SunEdison. The settlement resolves all of the disputes among the parties regarding termination of acquisition of Latin America Power.

The parties have agreed that the arbitration proceeding between the parties will be terminated upon final payment, the related action filed in New York state court will be dismissed without prejudice.

The settlement imposes no payment obligations on TerraForm Power. None of the parties has admitted to any wrongdoing or liability with respect to the claims asserted in the arbitration and New York state court action.

SunEdison shares were up $0.26 at $1.78, while TerraForm fell 1 percent to $9.36. Shares of SunEdison have plunged 65 percent year-to-date, while TerraForm's slipped 26 percent.