SunEdison’s failure to consummate the merger when required pursuant to the terms of the merger agreement constitutes a willful breach of the merger agreement, and Vivint Solar intends to seek all legal remedies available to it in respect of such willful breach.

Last July, an agreement was reached between Vivint Solar and SunEdison for $2.2 billion, where SunEdison would acquire Vivint Solar and TerraForm Power would acquire Vivint Solar’s rooftop solar portfolio. That acquisition has been turned on its head after Vivint Solar recently canceled the deal, accusing SunEdison of breaching their contract.

“SunEdison’s failure to consummate the merger when required pursuant to the terms of the merger agreement constitutes a willful breach of the merger agreement, and Vivint Solar intends to seek all legal remedies available to it in respect of such willful breach,” Vivint said in a statement.

Both companies stock prices have dropped dramatically in the last year, with Vivint Solar currently sitting at $3.50 per share (down from $15.86 in July 2015) and SunEdison checking in at $2.02 (down from $31.84). The proposed merger between the two has drawn criticism from multiple parties, including hedge fund billionaire David Tepper, assuming that SunEdison lacked the financial backing necessary to complete the acquisition. That has proven to be correct after SunEdison was denied $300 million in credit via bank loans, an amount that was required to complete the Vivint Solar addition.

Published 3/22/2016