SunEdison preparing to file for bankruptcy protection: WSJ

sunedison(h/t Raining Sky) Struggling solar developer SunEdison Inc is planning to file for bankruptcy protection in the coming weeks, The Wall Street Journal reported on Friday, citing people familiar with the matter.

Then company’s shares, down about 98 percent over the past 12 months, fell a further 45 percent in heavy extended trading to 23 cents each.

Once the nation’s fastest growing renewable energy developer, SunEdison is preparing to seek Chapter 11 protection and is in talks with two creditor groups for a loan to fund its operations during the process, the newspaper reported.

A spokesperson for Belmont, California-based SunEdison did not immediately respond to requests for comment.

The company faces a cash crunch after an aggressive acquisition strategy saddled it with $12 billion debt, and it has said in filings it faces scrutiny from regulators at the U.S. Department of Justice and the U.S. Securities and Exchange Commission over a failed deal and other issues.

The company’s creditors are likely to take control of the company and its portfolio of power projects, The Wall Street Journal reported, citing the sources.

The newspaper reported that SunEdison has been meeting with creditors to negotiate a loan to see it through bankruptcy, but competition for the deal among lenders has delayed an agreement.

Senior bank lenders led by Deutsche Bank AG form one camp of lenders while the other comprises a group of creditors, most of which are hedge funds focused on distressed companies, that participated in a junior debt offering in January that raised about $725 million, the newspaper said.

A bankruptcy at SunEdison, whose investors include prominent hedge fund investor David Einhorn of Greenlight Capital, would rank among the largest involving a non-financial company in the past 10 years, according to bankruptcydata.com.

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    T G

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    This is heart breaking, the company should be supported through sky high electricity cost and regular infusions of taxpayers money – free of course.

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    A.D. Everard

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    It’s hard to make all this “fee energy” work. I get the feeling greens haven’t worked their way around to appreciating the attributes of coal and gas. Is that ever likely to happen? I somehow doubt it.

    It amazes me that people can be fired up about this and all so passionate about “saving the Earth”, but not enough to actually study the issues. I wish they would.

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    Amber

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    Solyndra solar power took tax payers for over $500 million before suddenly vanishing .
    What did tax payers underwrite for the sinking Sun Edison ?

    These businesses get massive grants ,tax breaks , free PR ,photo ops and yet screw tax payers .

    To see Al gore stand there with a bunch of AG’s and whine about solar panel installers having to record serial numbers like it some
    dark conspiracy is such a joke .

    How many pump and dump schemes do taxpayers have to pour money into before
    this con game is stopped ?

    There is nothing wrong with alternative energy and occasionally some of it works but the most effective way to reduce fossil fuel use on a scale to have significant impact is nuclear power .

    The scary warming promoters are oh so politically correct but they know the truth .

    As long as tax payers continue to fund uneconomic and questionable “green ” projects no progress will be made .

    If we really studied micro nuclear power and related options we may find safe reliable solutions . Ignoring the elephant in the room is pretending to be concerned about the environment .

    If extreme green were really honest about their motives they are actually into massive population reduction strategies , green guilt funding and wealth transfer .

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