Clean energy provider SunEdison may be nearing bankruptcy, according to Bloomberg News. Regulatory filing holding company TerraForm Global, which is owned by SunEdison, revealed that SunEdison is facing “liquidity difficulties” and that there is “substantial risk that SunEdison will soon seek bankruptcy protection.”
According to Bloomberg, SunEdison has spent approximately $3.3 billion buying wind and solar projects, including $2.4 billion on its purchase of First Wind in 2014, growing its debt portfolio to over $11.7 billion. Meanwhile, SunEdison stock prices have plunged from over $32 a share in June 2015 to just $0.55 a share today.
In addition to its falling stock price and likelihood of bankruptcy, SunEdison is also facing a probe by the U.S. Securities and Exchange Commission (SEC). The SEC is investigating whether SunEdison overstated its liquidity in previous regulatory filings.
SunEdison has also twice delayed its annual 10-k filing, fueling speculation that it is in a precarious financial position.