No shocker here…
SunEdison (NYSE: SUNE) shares plunged over 40% Tuesday after unit TerraForm Global (NASDAQ: GLBL) stated that “due to SunEdison’s liquidity difficulties, there is a substantial risk that SunEdison will soon seek bankruptcy protection.”
In addition, the Wall Street Journal reported overnight that the SEC is investigating SUNE’s “disclosures to investors about how much cash the solar-power company had on hand as its stock price collapsed last year.”
Last week we highlighted that the company was in talks with holders of its second-lien loans to fund a debtor-in-possession (DIP) financing facility.
Bankruptcy appears to be a forgone conclusion at this point. Now it is just a waiting game.
Low oil prices have added two more victims today in two separate industries today.
- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW) filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. Quantum Fuel Systems was spun-off from IMPCO Technologies in 2002. The company is a leader in the innovation, development and production of natural gas fuel storage systems and the integration of vehicle system technologies including engine and vehicle control systems and drivetrains. Needless to say but there is probably not too much demand for alternative fuel sources with gasoline at below $2 per gallon nationally.
- Emerald Oil, Inc. (NYSE: EOX) announced that the Company and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. Commenting on the bankruptcy the company said:
“Like many other exploration and production companies, Emerald’s operations have been significantly impacted by the dramatic decline in oil prices, the continued low prices of oil and natural gas, and the general uncertainty in the energy markets. These macro-economic factors, coupled with Emerald’s substantial debt obligations, resulted in the Company’s decision to explore strategic restructuring alternatives to reduce its debt and achieve a sustainable capital structure. Over the last nine months the Company explored and presented multiple solutions to its lenders to solve the Company’s current financial condition, however the Company was unable to obtain the requisite lender consent. Emerald continues to evaluate and discuss alternatives with its stakeholders and believes that an in-court sale process will maximize value and position Emerald for future profitability.”
That beautiful mess known as SunEdison (NYSE: SUNE) may be getting that much closer to bankruptcy after reports surfaced yesterday from Debtwire that the company is in talks with holders of its second-lien loans to fund a debtor-in-possession (DIP) financing facility. Talks focused on providing the company with about $300 million in new liquidity, the report stated.
Today two Wall Street sell-side analysts threw in the towel amid the news.
Continue reading “SunEdison Gets Closer to the Sun and Black-hole Status”