Bankruptcy has created substantial risks to our business, operations and financial condition. However, we have continued to operate our business pursuant to contingency plans that we have been developing.
As part of the Company’s transition away from its historical reliance on SunEdison, as of January 1, 2017, substantially all employees at both the corporate and project levels who were previously employed by SunEdison were hired directly by the Company. As such, the Company no longer materially relies upon SunEdison for personnel to manage and operate our business or our power plants. The Company continues to execute on the other aspects of its plan to implement a stand-alone organization. We expect to incur higher costs associated with performing these services ourselves or hiring substitute providers than the fees we paid under the MSA.
Acquisition, Formation and Related Costs
Acquisition, formation and related costs are immaterial for the three months ended September 30, 2017, compared to $0.1 million for the same period in 2016, as there were no acquisitions during the three months ended September 30, 2017.
Depreciation, Accretion and Amortization
Depreciation, accretion and amortization expense increased from $13.4 million for the three months ended September 30, 2016 to $16.2 million for the three months ended September 30, 2017. The increase was primarily due to the impact of foreign currency on depreciation expense for wind power plants denominated in foreign currencies.
Costs Associated with Shareholder Litigation
Costs associated with shareholder litigation were $33.0 million for the three months ended September 30, 2017, which reflects the aggregate amount that the Company expects to pay in settlement costs and associated fees in connection with certain shareholder litigation against the Company, partially offset by insurance proceeds received by the Company as of September 30, 2017. The Company expects that the full amount of the costs associated with shareholder litigation will be funded through a combination of proceeds from existing insurance and litigation settlement proceeds available to the Company. However, there can be no assurance that there will be no out-of-pocket costs to the Company as a result of the shareholder litigation, or that the actual costs will not exceed the Company’s current expectations.
(Gain) Loss on Extinguishment of Debt, net
There was no gain or loss on the extinguishment of debt recognized for the three months ended September 30, 2017 or the same period in the prior year.
Interest Expense, net
Interest expense, net for the three months ended September 30, 2017 and 2016 was as follows:
Three Months Ended September 30,
Total interest expense, net
Interest expense, net decreased $4.0 million during the three months ended September 30, 2017 compared to the same period in 2016. At the corporate level, there was a decrease of $5.9 million of interest expense, net during the three months ended September 30, 2017 compared to the same period in the prior year, due primarily to the Revolver balance having been paid off in the quarter ended March 31, 2017. At the project level, solar power plants accounted for an increase of $20.1 million of interest expense, net primarily due to the amortization schedule on the project level debt, which experienced higher interest rates in addition to default interest.
As a result of the SunEdison Bankruptcy, we do not expect SunEdison to perform under the Interest Payment Agreement going forward, in which case we expect to continue servicing out debt obligations with current liquidity and cash flows from operations. See Item 1. Note 16 - Related Parties - Interest Payment Agreement for additional information on the Interest Payment Agreement.