SunEdison: What's Happening after Chapter 11 Bankruptcy?

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Part 9
SunEdison: What's Happening after Chapter 11 Bankruptcy? PART 9 OF 9

What’s Next for SunEdison?

Stock performance so far

SunEdison (SUNEQ) stock, which is trading OTC (over-the-counter), has fallen ~68.0% since April 5, 2017. During the past 52 weeks, the stock has traded in the range of $0.00 to $0.35.

What&#8217;s Next for SunEdison?

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As of October 5, 2015, SunEdison has a market capitalization of $6.7 million. The fall in SunEdison stock since its bankruptcy filing in 2016 has put its yieldcos TerraForm Power (TERP) and TerraForm Global (GLBL) in a turmoil.

For solar (TAN) players First Solar (FSLR), SunPower (SPWR), and Canadian Solar (CSIQ), an aggressive competitor in bankruptcy is positive.

Can SunEdison file its forms?

SunEdison hasn’t been able to file its 2015 Form 10-K or 1Q16 Form 10-Q since it filed for bankruptcy protection. The delay is primarily due to the voluntary relief petition filed on April 26, 2016, under Chapter 11 of the United States Bankruptcy Code and the material weaknesses in its internal controls over financial reporting caused by deficient information technology controls in connection with newly implemented systems.

Brookfield takeover

On March 7, 2017, Brookfield Asset Management announced that it would acquire 100% of TerraForm Global and 51.0% of TerraForm Power from SunEdison for $787.0 million and $622.0 million in cash, respectively. It will also assume ~$455.0 million of GLBL’s debt.

As part of the deal, GLBL Class A shareholders would receive $5.10 per share in cash, and TERP Class A shareholders would receive $11.46 per share in cash. The deal clears the $1.0 billion and $2.0 billion claims that TERP and GLBL had, respectively, against SunEdison.


Soon after SunEdison filed for bankruptcy, the court granted $300.0 million as debtor-in-possession financing to continue its operations and pay its staff. On July 25, 2017, the court approved SunEdison’s $640.0 million reorganization plan to exit bankruptcy.

According to the restructuring plan, the company is expected to have a trust to conduct lawsuits and a new publicly traded entity. The debtholders financing the exit will receive 90.0% of the new company’s stock. The company expects to emerge out of bankruptcy by November 2017.

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