World's largest renewable energy developer on verge of bankruptcy

SunEdison stock has dropped 90%

The world's largest renewable energy developer, SunEdison, may be on the verge of filing for bankruptcy protection after it was revealed that it is reportedly being investigated for overstating its financial stability.

SunEdison has had an aggressive acquisition history, but those buyouts have left it with $11 billion in debt, Reuters reported.

"SunEdison is having more than its share of troubles," Deutsche Bank wrote in an announcement that it was suspending its ratings of both SunEdison and its parent company, TerraForm Global.

TerraForm Global announced its 10K filing would be delayed due to SunEdison's financial reporting issues. TerraForm's annual report was to be filed by Wednesday.

"SunEdison and its subcontractors are continuing to perform substantially under the operations and maintenance contracts for our operating projects," TerraForm Global wrote in a filing with the Securities and Exchange Commission. "Due to SunEdison's liquidity difficulties, there is a substantial risk that SunEdison will soon seek bankruptcy protection. Such an action would have a material adverse effect on TerraForm Global given our reliance on SunEdison."

Deutsche Bank noted SunEdison is "suffering under a collapsed stock price, multiple lawsuits, and an accounting investigation."

A Wall Street Journal report this week revealed that SunEdison is being investigated for overstating its cash position. SunEdison's shares fell more than 40% after the article was published Monday.

Since reaching a high of $30 per share in July, SunEdison's shares have tanked, closing at less than a dollar per share yesterday. The share price was at 57 cents today.

SunEdison's deal to acquire Vivint Solar for $2.2 billion fell apart earlier this month when Vivint terminated the agreement citing failure by SunEdison to meet its financial obligations.

SunEdison was required to secure bank financing in order to complete the buyout of Vivint, one of the largest providers of rooftop solar systems. Recent media reports suggest that banks were unwilling to provide financing for the deal, according to a report by Deutsche Bank.

SunEdison did not respond to a request for comment from Computerworld.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags technologygreenrenewable energy

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Lucas Mearian

Lucas Mearian

Computerworld (US)
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?