Shares of SunEdison (SUNE) and its yieldco TerraForm Power (TERP) were moving in opposite -- and almost equal -- directions in late-day trading on reports that Appaloosa Management is seeking an expedited trial against SunEdison.
SunEdison was down 11% at one point while shares of TerraForm Power were up 9.5%.
In January, David Tepper's Appaloosa Management filed a complaint against SunEdison, alleging that SunEdison's planned acquisition of Vivint Solar (VLSR) was unfair to TerraForm Power -- in which Appaloosa has a 9.5% stake.
"Appaloosa believes that an expedited trial is in the best interests of TerraForm and its stockholders," Appaloosa said in a statement obtained by Bloomberg.
On Thursday, a Delaware court denied the preliminary injunction motion Appaloosa filed to block the deal from going through. Shares of SunEdison rallied 36% on Thursday in response to the news.
Sources close to the matter told Real Money on Friday that while Judge Andre Bouchard had serious questions about the proposed transaction, he did not believe that TerraForm Power faced imminent harm from the transaction. The judge left open the possibility of the case going to trial.
On Friday, David Tepper told Real Money that he was waiting for the release of the transcript from the ruling before deciding how to proceed. Tepper and Appaloosa Management were unavailable to comment on Monday.
Under the terms of the transaction, which was $2.2 billion when announced in July, TerraForm Power would be required to pay SunEdison $799 million and acquire Vivint's portfolio of less credit-worthy projects.
SunEdison declined to comment on the matter.