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SunEdison (SUNE) Files For Chapter 11 Bankruptcy

Confirming the rumors that have followed the company for months, embattled solar energy giant SunEdison SUNE announced Thursday that it filed for Chapter 11 bankruptcy reorganization. SunEdison's publicly-traded spinoffs, TerraForm Power TERP and TerraForm Global GLBL, are not part of the filing.

The news is not entirely surprising for those who follow SunEdison. The company has seen its stock plummet over 99% since July, when concerns began to grow about its ability to pay back its large debt obligations. SunEdison currently owes creditors nearly $10 billion.

"Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues," said Ahmad Chatila, SunEdison CEO in the company's official press release.

SunEdison also said that the reorganization filing will allow the company to continue working on ongoing projects, paying wages, providing services to customers, paying vendors and suppliers, and complying with regulatory obligations.

The company got into debt trouble as its rapid expansion plan backfired. Last year, the company made 18 acquisitions, including a $2.4 billion takeover of First Wind LLC. As cash dried up, SunEdison started to tumble.

Twice this year, SunEdison has delayed reporting its 2015 financial results as the company launched an internal investigation into its accounting practices. Last week, that investigation revealed no evidence of fraud, blaming instead “overly optimistic” accounting.

Following the news of the bankruptcy filing, trading of SUNE was halted. TERP is up nearly 5% on the day, while GLBL has gained over 11%.

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TERRAFORM POWER (TERP): Free Stock Analysis Report
 
SUNEDISON INC (SUNE): Free Stock Analysis Report
 
TERRAFORM GLBL (GLBL): Free Stock Analysis Report
 
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