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One of the most volatile stocks on the market, SunEdison Inc. (SUNE), is once again having another extreme day of trading. SUNE stock because an internal probe of the company found no evidence of fraud. That’s a good thing, right?
Well today, shares of SunEdison are down just over 30% during morning trading, and this decline is most likely related to the company discussing with creditors about restructuring financing. The discussions are ongoing and there is no guarantee that a deal will be reached.
According to a via Bloomberg, “The company and its first- and second-lien lenders entered into a confidentiality pact on March 17 for the financing transactions in a potential bankruptcy filing, the company disclosed in a regulatory filing to the Securities and Exchange Commission, which included a 34-page slide presentation to creditors.”
SunEdison needs a $310 million loan to fund it through a potential bankruptcy process, according to estimates in the March 17 presentation per Bloomberg. The company projected using a total of $779 million in cash for the first quarter.
The negotiations come as SunEdison on at least $1.4 billion in loans and credit facilities, and after it failed to make a $2.6 million interest payment on its 2% convertible bonds maturing in 2018. The company is flirting with bankruptcy and according to Bloomberg, “analysts said the disclosure may please creditors.”
SunEdison Inc. has a Zacks Rank #3 (Hold) and as of 10:40 AM ET, its stock was down 36.76% and continuing to decline.
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