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Beleaguered solar developer SunEdison ( SUNE ) filed for Chapter 11 bankruptcy reorganization early Thursday after securing $300 million in debtor-in-possession financing, the company said in a press release . The move had been expected. SunEdison stock, which crashed spectacularly in the second half of 2015, was up a fraction in early trading on the stock market today , at 35 cents. SunEd yieldcos — companies created to hold solar assets — TerraForm Power ( TERP ) and TerraForm Global ( GLBL ) stocks were up a respective 7% and 8%. The SunEdison bankruptcy doesn’t include those yieldcos. SunEd CEO Ahmad Chatila described the Chapter 11 filing as a reorganization that will let SunEd “right-size” its balance sheet and reduce debt. As of Sept. 30 — SunEd’s last financial filing — the company had wracked up $11.7 billion in debt amid a rampant M&A spree that ended with its failed attempt to buy solar installer Vivint Solar ( VSLR ) for an initial $2.2 billion. “Our decision to initiate a court-supervised restructuring was a difficult but important step to address out immediate liquidity needs,” Chatila said in a statement. Restructuring will allow SunEdison to become a “more streamlined and efficient operator” as it sheds non-core assets and takes advantage of its technological and intellectual assets, Chatila said. Meanwhile, SunEdison will continue ongoing projects and pay for products procured after the Chapter 11 filing. Employees will still receive a wage and benefits. SunEdison representatives wouldn’t comment on media inquiries, instead directing reporters to the company’s new restructuring website . Scalper1 News
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