SunEdison files for bankruptcy protection

[JANASENA]

U.S. solar energy company SunEdison filed for Chapter 11 bankruptcy protection on Thursday, becoming one of the largest non-financial companies to do so in the past 10 years.

This story is developing. Please check back for further updates.

Once the fastest-growing U.S. renewable energy developer, SunEdison embarked on an aggressive acquisition strategy that left it struggling with $12 billion in debt.

In its bankruptcy filing, the company said it had assets of $20.7 billion and liabilities of $16.1 billion as of Sept. 30.

The company said it secured up to $300 million in new financing from its first-lien and second-lien lenders, which is subject to court approval. The money will be used to support SunEdison's operations during its bankruptcy, such as paying wages and vendors.

"Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues," said Ahmad Chatila, SunEdison chief executive officer.

He said the company planned to use Chapter 11 to reduce debt, shed non-core operations and take steps to get the most value out of its technology and intellectual property.

Although solar project developers such as SunEdison continue to benefit from robust demand, their shares have been hit by investor concerns that demand could fall in tandem with weak oil prices.

Shares of SunEdison were halted, and last traded at about 34 cents on the New York Stock Exchange. The company's stock traded as high as $33.44 per share in July.

SunEdison has struggled with its own list of problems, as well.

Breakneck expansion during 2014 and 2015 left the company saddled with huge debt.

In addition, the company has become embroiled in disputes with its yieldcos, or publicly-traded subsidiaries that own and operate renewable energy assets, some of which were acquired from SunEdison.

The yieldcos, TerraForm Power and TerraForm Global, were not part of the bankruptcy.

TerraForm Global, is suing SunEdison for breach of contract, alleging it misappropriated $231 million of TerraForm's cash.

TerraForm Global, which had warned that SunEdison was at "substantial risk" of bankruptcy, said last month that SunEdison, its controlling shareholder, might not transfer to it some solar energy projects in India and Uruguay, and also may not complete other deals.

Billionaire David Tepper's Appaloosa Management is seeking to overhaul the Conflicts Committee of the other yieldco, TerraForm Power, claiming the company's controlling shareholder, SunEdison, breached its fiduciary duties.

SunEdison itself faces about two dozen legal claims, mainly by shareholders who accuse the company of misleading them about its financial position.

The company has delayed filing its annual report twice after identifying material weaknesses in its financial reporting controls.

SunEdison is also being investigated by the U.S. Department of Justice and the U.S. Securities and Exchange Commission over the failed Vivint Solar deal and other issues.

Early in March, Vivint terminated the cash-and-stock deal, worth $2.2 billion when it was forged in July 2015, after SunEdison failed to close on the planned acquisition.

SunEdison's financial troubles have imperiled dozens of projects underway globally. The company has sold or is trying to unload some of them, while others are scrambling to line up new financing.

The case is in U.S. Bankruptcy Court, Southern District of New York, Case No: 16-10992.

[JANASENA]

[JUSTME]

govidaaa...govinda

[Feelingbad]

Company will be operating still right ? Its not real bankruptcy (chapter 7)... bankruptcy protection (chapter 11)

[JANASENA]

1 minute ago, Feelingbad said:

Company will be operating still right ? Its not real bankruptcy (chapter 7)... bankruptcy protection (chapter 11)

anthey anukunta. calling experts to through some light

[JUSTME]

ltt

[JANASENA]

 

[Hitman]

Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the "absolute priority"). A trustee is appointed, who ensures that any assets that are secured are sold and that the proceeds are paid to the specific creditors.

Vs

Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.

Telugulo

Chapter 7 = astulu ammi, vachina dabbulu first creditors ki ichi, inka emaina migili unte preferential share holders ki ichi, inka emaina migli unte common shareholders ki istaru..

Chatper 11 = Business will continue under a special supervision by court appointed body. kotha appulu vastayi may be high rates to. vache profits to vallaki melliga pay chesukuna veltu, pata appulu clear chestu, share value ni melliga develop cheyyali. takes time but it lives for a while. may be share value 5cents ki padutundi.

[idibezwada]

33 minutes ago, JANASENA said:

 

Annai..nuvve kada monna 6 flagstho compare sesav denni?

[JANASENA]

3 minutes ago, Hitman said:

Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the "absolute priority"). A trustee is appointed, who ensures that any assets that are secured are sold and that the proceeds are paid to the specific creditors.

Vs

Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.

Telugulo

Chapter 7 = astulu ammi, vachina dabbulu first creditors ki ichi, inka emaina migili unte preferential share holders ki ichi, inka emaina migli unte common shareholders ki istaru..

Chatper 11 = Business will continue under a special supervision by court appointed body. kotha appulu vastayi may be high rates to. vache profits to vallaki melliga pay chesukuna veltu, pata appulu clear chestu, share value ni melliga develop cheyyali. takes time but it lives for a while. may be share value 5cents ki padutundi.

So sunedison ki inka chance unda baa ? 

[JANASENA]

1 minute ago, idibezwada said:

Annai..nuvve kada monna 6 flagstho compare sesav denni?

nenu invest chesindi $600 oka 1 yr lite teesukunta . chooddam vasthey emanna vasthay ledantaye lite. will hold it till the end. 

[Hitman]

2 minutes ago, JANASENA said:

So sunedison ki inka chance unda baa ? 

Not now, eventually.. few years.. SOLAR is booming. SUNE is the only company has solar farms all over world. i will buy more in near time. (based on how events shape up in near future) 

[idibezwada]

2 minutes ago, JANASENA said:

nenu invest chesindi $600 oka 1 yr lite teesukunta . chooddam vasthey emanna vasthay ledantaye lite. will hold it till the end. 

Stock market is not gambling...kai raja kai ani oka $500 padeydaniki..

[Hitman]

Just now, idibezwada said:

Stock market is not gambling...kai raja kai ani oka $500 padeydaniki..

More than gambling. Highly manipulated by market makers.

[JANASENA]

12 minutes ago, Hitman said:

Not now, eventually.. few years.. SOLAR is booming. SUNE is the only company has solar farms all over world. i will buy more in near time. (based on how events shape up in near future)