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SunEdison ( SUNE ) yield company TerraForm Power ( TERP ) slipped from Nasdaq compliance Wednesday, when SunEd’s constrained finances forced the duo to miss a March 15 deadline to submit their already delayed 10-K year-end financial statement with the Securities and Exchange Commission. In midday trading on the stock market today , SunEdison stock was down 6% and TerraForm Power stock down 5%. Shares were down a respective 59% and 16% for the year as of Tuesday’s close. TerraForm Power now has until May 16 to either submit the 10-K or a plan to regain compliance, and until Sept. 12 to become compliant or face delisting. The SunEd yieldco blamed its parent for the holdup. “Due to our management services arrangement with SunEdison . . . our financial reporting and control processes rely to a significant extent on SunEdison systems and personnel,” TerraForm Power said in a press release. If there are inefficiencies in SunEdison’s reporting system “it is necessary for us to assess whether those deficiencies could affect our financial reporting,” TerraForm Power wrote. On Feb. 29, SunEdison delayed its 10-K as it finalizes an audit into its liquidity standing. Late last year, former SunEdison executives alleged the firm lied about its liquidity stance. SunEd shook up its executive staff in November 2015, terminating former Executive Vice President Carlos Domenech. At the time, Domenech was also CEO for TerraForm Power and another SunEd yieldco, TerraForm Global ( GLBL ). SunEdison Chief Financial Officer Brian Wuebbels was immediately tapped to head up the yieldcos. But Wuebbels recently opted to leave his SunEd role to focus entirely on the TerraForm pair. Ilan Daskal will succeed Wuebbels on April 4, SunEdison said. It’s only the most recent in a series of SunEdison shake-ups. Last week, residential installer Vivint Solar ( VSLR ) backed out of a deal to be acquired by SunEdison, saying that, despite cutting its bid in December, SunEd still couldn’t afford to buy it. This month, rumors rumbled that banks financing the M&A had pulled their funding after SunEdison first delayed its 10-K. On Wednesday, SunEdison blamed the twice-delayed 10-K on “material weaknesses in its internal controls over financial reporting,” saying its newly implemented IT systems are deficient. But no material mistakes have been found in the audit thus far, SunEd said. Scalper1 News
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