The World’s Largest Renewable Energy Developer Could Go Broke
Ben Walsh for The Huffington Post: There is a “substantial risk” that SunEdison may file for bankruptcy, the world’s largest renewable energy developer said in a regulatory filing on Tuesday. The company’s fall isn’t a referendum on the solar industry as a whole, as much as it is on SunEdison’s aggressive growth strategy fueled by excessive debt and financial engineering, analysts say.
SunEdison “just thought they were smarter than everyone else,” said David Levine, the founder and CEO of Geostellar, a solar energy marketplace that has done deals with the company.
The company’s shares have fallen steeply since they hit a high of $30 in July. They were at just $1.26 before the filing. The stock immediately dropped another 40 percent when the market opened after the filing, and the company was trading at just $0.59 by Tuesday lunchtime.
“What happened from late-2014 to the middle of 2015, the company began embarking on a hyper-growth strategy,” S&P analyst Angelo Zino told The Huffington Post. Cont'd...
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