NEW YORK (TheStreet) -- Shares of TerraForm Power(TERP) - Get Report were declining in after-hours trading on Monday after bankrupt solar energy company SunEdison said that it has entered settlement discussions with TerraForm Power and its other yieldco TerraForm Global (GLBL).
The settlement talks follow allegations by the yieldcos that SunEdison failed "to perform under the integrated sponsorship arrangement put in place at the time of TerraForm Power's initial public offering," according to a statement on September 25.
This failure constitutes a material breach that could excuse TerraForm Power from "payment or performance of its contractual obligations under the sponsorship arrangement," the statement continued.
TerraForm Global stock was unchanged in Monday's extended trading session.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
TerraForm Power's weaknesses include its deteriorating net income and generally high debt management risk.
You can view the full analysis from the report here: TERP
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.