World's largest renewable energy developer on verge of bankruptcy

03-Apr-2016

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 subsidiary, 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." (by By Lucas Mearian, Computer World)


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