Connect with us

Hi, what are you looking for?

SunEdison Logo (PRNewsFoto/SunEdison, Inc.)

Clean Power

SunEdison Shares Tank Further After News Of Debt Restructuring Leaks

News that SunEdison is in talks with holders of its second-lien loans to fund a debtor-in-possession financing facility has spooked investors, causing the company’s shares to tank 25% by days’ end.

SunEdison Logo (PRNewsFoto/SunEdison, Inc.)We have already covered news of SunEdison’s dramatic downward trend over the past 9 months, which has culminated in SunEdison (and its first yieldco, TerraForm Power) settling with Latin America Power for $28.5 million over the termination of a planned acquisition; Vivint Solar terminating its acquisition agreement with SunEdison due to “SunEdison’s failure to meet its obligations under the merger agreement” and then filing “action in the Court of Chancery of the State of Delaware suing SunEdison, Inc. over its willful breach of the merger agreement between Vivint Solar and SunEdison.”

A few days later SunEdison announced that it had missed the deadline to file its Q4’15 and 2015 financial reports due to an ongoing investigation and IT errors, and just this week TerraForm Global, SunEdison’s second yieldco, dedicated to emerging markets, announced that it was cancelling a 326 MW deal in Central America.

So it really should come as no surprise that investors reacted negatively to today’s leaked news that the company is in negotiations with holders of its second-lien loans to fund a debtor-in-possession (DIP) facility. This is according to Debtwire, by way of “two sources familiar with the matter.” The news was published on Tuesday, and by looking at the company’s shares, you can also see exactly when the news was leaked.


“DIP negotiation means that the company has effectively run out of cash and they get to pay their creditors ‘fair market value’ for the secured assets versus the contracted value,” Axiom Capital analyst Gordon Johnson told Reuters.

The Motley Fool raises the next natural concern, that “SunEdison is veering closer to bankruptcy by the day.” With its financial statements for the fourth quarter and full-year 2015 still absent, and this latest news which suggests the company is even closer to being out of cash, it really feels as if it is only a matter of time before what was once the world’s leading and preeminent renewable energy developers has to file for bankruptcy.

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (, and can be found writing articles for a variety of other sites. Check me out at for more.


You May Also Like


Tesla's China sales in April are as expected.


With the COVID-19 pandemic keeping many people and cars at home and the looming threat of mass bankruptcy forcing consumer demand even lower, we...

Clean Power

One of India’s leading renewable energy generation companies is on a fundraising spree. Greenko Energy Holdings recently raised funds by selling green bonds, for...


In a classic FUD piece penned by a long-term cheerleader of Japanese OEMs, Reuters — either in ignorance or in deceit — is spreading...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.