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U.S. Department of Justice officials subpoenaed SunEdison ( SUNE ), seeking financing details of its failed Vivint Solar ( VSLR ) acquisition and transactions involving yieldcos TerraForm Power ( TERP ) and TerraForm Global ( GLBL ), SunEd revealed in a late Thursday 8-K. The subpoena came Tuesday, a day before Brian Wuebbels stepped down from his CEO positions at both TerraForms. All three have now missed the deadline to file their 10-K documents, meaning that unless waivers have been obtained from creditors, SunEd is in technical default on $725 million in second-lien loans. Yieldco TerraForm Global said Wednesday it’s sufficiently liquid to survive without SunEdison, noting the parent company’s “substantial risk” of bankruptcy. SunEdison says it plans to cooperate with the DOJ inquiry and an investigation by the U.S. Securities and Exchange Commission. The subpoena also requests documents related to SunEd’s internal audits and financing information for its Uruguay projects. The beleaguered developer launched an internal investigation in late 2015 into its liquidity stance based on allegations by former and current employees of financial misconduct. Authorities are also looking for documentation related to “the conduct of a former non-executive employee who is alleged to have committed wrongdoing in connection with the Vivint termination negotiations,” according to the 8-K. Scalper1 News
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