Connect with us

Hi, what are you looking for?

SunEdison Logo (PRNewsFoto/SunEdison, Inc.)

Clean Power

SunEdison In More Hot Water As SEC Investigation Begins & Bankruptcy Looms

Once the world’s leading renewable energy developer, SunEdison’s fortunes have fallen like a rock, tied to a much larger rock, and are now facing the looming threat of bankruptcy.

SunEdison Logo (PRNewsFoto/SunEdison, Inc.)SunEdison’s woes have already been well covered — from its numerous failing transactions, to missing its Q4 & 2015 filing deadline, to news of debt restructuring. This week, however, it’s only gotten worse, as the US Securities and Exchange Commission (SEC) has begun its own investigation into the company’s disclosures to investors about its liquidity. To make matters more complicated, SunEdison’s second yieldco, TerraForm Global, intended to deal solely with emerging markets, filed a report with the SEC warning of “a substantial risk that SunEdison will soon seek bankruptcy protection.”

News of the possibility that SunEdison had in some way misled its shareholders is not new — late in 2015 the Audit Committee initiated an investigation based on allegations made by former executives of the company concerning “the accuracy of the Company’s anticipated financial position.” However, according to The Wall Street Journal, officials in the SEC’s enforcement unit have apparently begun investigating SunEdison’s disclosures to investors, looking into whether the company overstated its liquidity last year when the company announced that it had $1 billion in cash.

TerraForm Global, Inc. Logo (PRNewsFoto/SunEdison, Inc.)This news was paired with a separate SEC filing made by TerraForm Global on Tuesday, advising “that the filing of their Annual Report on Form 10-K for the fiscal year ended December 31, 2015 will be delayed” beyond the deadline. This is due in large part to the fact that TerraForm Global relies on SunEdison’s own same-filings to be made to appropriately determine their own financial status, but according to the filing:

“SunEdison has not performed as obligated under the Management Services Agreement, in particular with respect to financial reporting and control matters.  Additionally, SunEdison has not or may not be able to perform under other agreements, including agreements with respect to the pending contribution of the projects in Uruguay and India, which were part of TerraForm Global’s IPO portfolio, and the pending dropdown of the additional India project portfolio aggregating 425 MW purchased by TerraForm Global, LLC (“Global LLC”) in the fourth quarter of 2015.”

Furthermore, TerraForm Global stated outright in its filing that, “due to SunEdison’s liquidity difficulties, there is a substantial risk that SunEdison will soon seek bankruptcy protection.”

Such a move would have a massive impact on TerraForm Global (not to mention the company’s other yieldco, TerraForm Power), however the company is still confident that, in the event SunEdison seeks bankruptcy protection, “TerraForm Global will have sufficient liquidity to support its ongoing operations.”

Unsurprisingly, TerraForm Global’s shares plummeted 19% in the wake of the company’s SEC filing.


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

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

Climate Change

Securities and Exchange Commission Chairman Gary Gensler said Wednesday that he was asking staff to consider making companies disclose climate risks in their annual...

Climate Change

Originally published by Union of Concerned Scientists, The Equation. By Rachel Cleetus, Policy Director Yesterday I had the opportunity to testify at a hearing held...

Climate Change

President Biden on Thursday ordered agencies across the federal government to prepare for risks to the American economy posed by climate change. The harms inflicted...


The news that the SEC had sued Elon Musk again was all over my Twitter feed earlier today. However, it turns out that “news”...

Copyright © 2021 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.