SunEdison Plunges After TerraForm Global Cites Bankruptcy Risk

(RTTNews) - The shares of SunEdison Inc. (SUNE) plunged in regular trading session after a holding company it controls said SunEdison may seek bankruptcy protection.

"Due to SunEdison's liquidity difficulties, there is a substantial risk that SunEdison will soon seek bankruptcy protection.......TerraForm Global does not rely substantially on SunEdison for funding or liquidity and believes that, in the event SunEdison seeks bankruptcy protection, TerraForm Global will have sufficient liquidity to support its ongoing operations," TerraForm Global Inc. (GLBL) said in a regulatory filing on Tuesday.

SUNE is currently trading at $0.57, down $0.69 or 54.68%.

GLBL is trading at $1.98, down $0.52 or 20.84%.

TerraForm Global anticipates that the filing of the Annual Report on Form 10-K for the fiscal year ended December 31, 2015 will be delayed beyond March 30, 2016. It expects to file a Form 12b-25 on or prior to March 30, 2016.

On February 29, 2016, SunEdison, Inc. filed a Form 12b-25, Notification of Late Filing, regarding the delayed filing of SunEdison, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2015. SunEdison, Inc. announced that its delay in filing its Form 10-K was principally due to the need to complete all tasks and steps necessary to finalize the annual financial statements and the other disclosures required to be included in that filing, and ongoing inquiries and investigations by the Audit Committee of its Board of Directors and its advisors relating to allegations concerning the accuracy of SunEdison, Inc.'s anticipated financial position based on certain issues raised by former executives and current and former employees of SunEdison, Inc.

On Monday, the Wall Street Journal reported that the U.S. Securities and Exchange Commission was investigating SunEdison Inc.'s disclosures to investors about how much cash the solar-power company had on hand as its stock price collapsed last year. Officials in the SEC's enforcement unit were looking into whether SunEdison overstated its liquidity last fall when it told investors it had more than $1 billion in cash.