• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 18 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 7 hours Saudi Arabia turns to solar
  • 4 hours Why is permian oil "locked in" when refineries abound?
  • 11 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 hour Could Venezuela become a net oil importer?
  • 7 hours Teapots Cut U.S. Oil Shipments
  • 6 hours Oil prices going down
  • 7 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 23 hours Sell out now or hold on?
  • 23 hours Could oil demand collapse rapidly? Yup, sure could.
  • 24 hours Gazprom Exports to EU Hit Record
  • 22 hours "The Gasoline Car Is a Car With a Future"
  • 8 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 17 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
Canada’s Oil Crisis Is Far From Over

Canada’s Oil Crisis Is Far From Over

While the Canadian government has…

Oil Markets Turn Bearish Ahead Of OPEC Meeting

Oil Markets Turn Bearish Ahead Of OPEC Meeting

Oil prices fell on Tuesday…

SunEdison Under SEC Scrutiny As Bankruptcy Looms

The U.S. Securities and Exchange Commission is looking into SunEdison to see whether or not the company exaggerated its cash on hand in disclosures last year. The news comes as the solar developer is teetering on the brink of bankruptcy.

The solar company has seen its stock collapse since last year as mounting debt problems have raised concerns about the company’s ability to keep the lights on. SunEdison’s share price is off by 96 percent since last July. That has translated to a decline of the company’s market capitalization from $10 billion last summer to just $400 million today.

Related: Even Utilities Are Starting To Get Behind Community Solar

SunEdison even delayed the release of a financial statement because unnamed current and former employees had concerns about the accuracy of the figures they were set to submit.

At the same time that SunEdison’s accounting practices are raising red flags, there are also rising rumors that the company is nearing bankruptcy. According to an SEC filing submitted by TerraForm Global, a subsidiary of SunEdison, the parent company is facing a “substantial risk” of bankruptcy.

Related: Does Saudi Arabia’s Play For Market Share Make Sense?

The problems at SunEdison really blew up into the spotlight when its $1.9 billion takeover of Vivint fell through. But the trouble began much earlier than that. As of late 2015, according to the WSJ, SunEdison had stopped paying suppliers and contractors as its cash position ran low.

SunEdison had heavily pushed the yieldco model, a corporate structure that became very popular several years ago but has since fallen out of favor. Yieldcos consist of spun off power projects that have predictable cash flows, but many of them have run into trouble.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News