UPDATE 2-Appaloosa raises stake in SunEdison unit TerraForm Power

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April 1 (Reuters) - Appaloosa LP disclosed a higher stake in
TerraForm Power Inc TERP.O , one of the two publicly listed
units of troubled solar energy company SunEdison Inc SUNE.N ,
as the hedge fund pushes for an overhaul of TerraForm's
conflicts committee.
The hedge fund led by billionaire David Tepper said on
Friday it owned 10.88 percent of TerraForm Power as of March 29,
up from the 9.50 percent it held as of Jan. 1.
TerraForm Power shares were up about 4 percent at $9 in
premarket trading.
Appaloosa filed an amended lawsuit on Tuesday, seeking to
overhaul TerraForm Power's conflicts committee, claiming that
SunEdison, the company's controlling shareholder, had breached
its fiduciary duties.
The committee was set up to evaluate transactions involving
potential conflicts of interest between TerraForm Power and any
affiliates, including SunEdison.
The hedge fund filed a lawsuit in January seeking to prevent
TerraForm Power from buying some of the assets of Vivint Solar
Inc VSLR.N , a solar panel installer SunEdison had agreed to
buy.
Vivint said in March it had scrapped the deal, amid concerns
about SunEdison's finances.
TerraForm Power said on Wednesday that Brian Wuebbels had
stepped down as its chief executive, soon after Appaloosa called
for his removal.
Wuebbels is also SunEdison's chief financial officer, but
the company has said he would be replaced this month.
TerraForm Global Inc GLBL.O , SunEdison's other unit, said
this week there was a "substantial risk" its parent, which is
saddled with almost $12 billion of debt, would file for
bankruptcy.
The U.S. Department of Justice and the U.S. Securities and
Exchange Commission have sought details related to SunEdison's
Vivint deal and transactions with its two units.
SunEdison has received a subpoena from the DoJ and an
"informal inquiry" from the SEC, the company said on Thursday.
Shares of SunEdison, which has lost most of its market value
in the past 12 months, were down about 7.5 percent at 49 cents
premarket. TerraForm Global shares were up 3.8 percent at $2.47.