Finance, Solar - April 21, 2016
SunEdison files for Chapter 11, says $300M loan will allow it to maintain operations
As had been widely predicted on Wall Street, SunEdison Inc. on April 21 filed for Chapter 11 bankruptcy protection.
The filing follows months of uncertainty around the renewable energy developer's fate that started in mid-2015 with a massive selloff in the company's shares amid an aggressive growth strategy and continued through questions about its finances and alleged mismanagement. SunEdison is also under investigation by the U.S. Department of Justice and Securities and Exchange Commission related to its accounting practices.
Though a number of its previously announced renewable energy deals have fallen through over the past few months, , "minimize disruption to its worldwide projects and partnerships, and make necessary operational changes." SunEdison said it expects undergo a court-supervised reorganization and re-emerge from bankruptcy as a stronger company.
Amid worry that SunEdison's story could sully perceptions of the U.S. solar industry, the Solar Energy Industries Association released the following statement from Dan Whitten, vice president of communications:
This is a highly competitive industry with a massive upside. As with other rapidly growing and successful industries, not every company in the solar market is going to stand the test of time. SunEdison is just one company and today's development does not reflect a trend of the broader industry. The solar industry is growing at warp speed. It took us 40 years to get to 1 million installations (which we have just done) and it will take us just two more years to hit 2 million and that, I think, illustrates the direction of the solar industry.