SunEdison, a global renewable energy company headquartered in the U.S., is now at risk of being bankrupt due to its aggressive acquisition strategy, as per one of its two publicly listed yieldcos, TerraForm Global Inc. GLBL warned.
A bankruptcy would rank among the largest involving a non-financial company in the past 10 years, according to bankruptcydata.com. SunEdison declined to comment over it.
The company is under debt of $11.67 billion as of Sept. 30. Excluding its yieldcos, the company had $7.9 billion of debt, and cash and cash equivalents of $1.3 billion.
The company has delayed filing its annual report twice now need to submit the report within 90 days.
According to a loan agreement filed with regulators, SunEdison could breach a covenant if it does not file its annual report within 90 days after the end of each fiscal year – in this case, March 30.
The delivery of annual financials is required under their first lien credit facility as well as their second lien term loan. The company has at least $1.4 billion in first-lien and second-lien debt.