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Reality Check For SunEdison Equity Holders

Summary

Articles are popping up offering the suggestion that SUNE equity holders have a chance to earn some return on their investment with the equity at $0.40.

We don't agree with this, and are confident of an equity wipeout as a result of a coming Chapter 11 filing.

Just because the stock is 90% lower than its highs doesn't mean it can't fall another 90%.

By Parke Shall

We don't like writing about SunEdison (NYSE:SUNE) any more than you probably like reading our articles, judging by the comments we've received over the last few weeks from those long the stock. We have said with a certain degree of certainty over the last few weeks that SunEdison is going to be filing for bankruptcy, and that likely means a total wipeout for equity holders.

We're not morbid people and we don't like constantly publishing negative articles on any company, let alone one that we think is in an industry that's ultimately going to be very lucrative. But SUNE missed the boat, and this round of equity holders has already suffered massive losses. Those buying or holding here around $0.40 have the chance to suffer additional losses that we believe will likely be well over 90% when all is said and done.

Today we will look at the latest evidence that the company will file bankruptcy, and what this is going to mean from this point forward with SUNE trading at $0.40 per share.

We have been supporting the case for a bankruptcy filing since the early pieces of evidence started to trickle in. The original Debtwire article that first stated the company was in debtor-in-possession financing was sourced well enough, in conjunction with the evidence of the company's stressed financials, for us to stake a claim that the company would be...


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