SunEdison Inc., the Maryland Heights-based solar developer that has accumulated $11 billion of debt through an aggressive string of acquisitions, now faces “substantial risk” of bankruptcy, one of its two publicly held units disclosed Tuesday.
TerraForm Global cited SunEdison’s liquidity issues in announcing that it would join its parent company and fellow SunEdison yieldco, TerraForm Power Inc., in delaying its annual report for the year ended Dec. 31.
That follows Monday’s news that the Securities and Exchange Commission is investigating whether SunEdison overstated its liquidity last year when it told investors it had more than $1 billion in cash.
Those developments add to a growing list of problems for SunEdison, which has delayed filing its annual report twice, blaming material weaknesses in its controls over financial reporting. Also, Vivint Solar Inc. recently scuttled a deal to be acquired by SunEdison.
The solar developer has seen its stock price plummet about 95 percent since its June peak. Once valued at $10 billion, the company now has a market cap of about $400 million.