In last trading session, the stock price of Sunedison Inc (NYSE:SUNE) declined more than 39% to close the day at $0.354. The decline came at a share volume of 176,269 compared to average share volume of 67.99 million. After the recent decline, the market cap of company narrowed to $71.05 million.
Bankruptcy update
SunEdison, the largest renewable-energy producer firm across globe, intends to file for bankruptcy protection. It reported $11.7 billion in short- and long-term debt as of September 30, 2015 and it has now settled for first- and second-lien financiers will offer bankruptcy financing that. SunEdison is in discussions with creditors to decide which businesses to run and which to offer under bankruptcy process. It has been attempting to sell assets so as to solve its liquidity crunch.
The company’s decline is largely due to its decisions, the almost certain outcome of an ascent that came on back of financial engineering. SunEdison went on a buying spree that covered six continents and radically increased its size. However, the investors questioned its plan and following that SUNE stock have lost 99% of its value in just nine months.
The problems
SunEdison has twice deferred filing its FY2015 annual report. It even failed to pay a $2.6 million interest amount on its 2% convertible bonds that are set to mature in 2018. Also, the U.S. SEC and the US Department of Justice are probing its finances. The company’s yieldco segments TerraForm Power Inc. and TerraForm Global Inc. have tried to separate themselves from the parent firm.
Earlier in April, TerraForm Global charged SunEdison, claiming that the parent company misused its finances to recompense a margin loan. The yieldco’s 3-member struggle committee approved the lawsuit. In addition, the company is dealing with litigation from Vivint Solar Inc., a rooftop solar firm that it attempted to acquire for $1.9 billion.
