SunEdison Files for Chapter 11 Bankruptcy Protection

PEG BRICKLEY and ANNE STEELE for The Wall Street Journal:  Solar-energy Company SunEdison Inc. on Thursday filed for chapter 11 bankruptcy protection, a dramatic move for a company whose market value stood at nearly $10 billion in July.

SunEdison said its publicly traded entities, TerraForm Power Inc. and TerraForm GlobalInc., aren’t part of the filing. The two so-called yieldcos—separate entities that buy operating projects from developer SunEdison and pay out cash flow to their shareholders—said Thursday they believe they have sufficient liquidity to run their businesses and meet financial obligations, although SunEdison’s bankruptcy “will present challenges.”

Bankruptcy has been a near-certainty for SunEdison for some time. The company borrowed heavily to buy up wind and solar developers, accumulating a pile of debt that worried investors. Disappointing earnings didn’t ease their fears about the pace of SunEdison’s growth, and an accounting move last year that reclassified more than $700 million worth of debt heightened anxieties.  Cont'd...

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

AllEarth Renewables - The Solar Tracker

AllEarth Renewables - The Solar Tracker

Designed and manufactured in the U.S., the AllEarth Solar Tracker is a complete grid-tied, dual-axis solar electric system that produces up to 45% more electricity than fixed systems. The tracker uses GPS and wireless technology to follow the sun throughout the day for optimal energy production. It has an industry-leading 10 year warranty and 120 mph wind rating, superior snow shedding, and automatic high wind protection. Its simple, durable design and complete system pallet simplifies costly procurement and installation time. Contact us about becoming a dealer partner or purchasing an AllEarth Solar Tracker.