On Tuesday, global renewable energy company, SunEdison (NYSE: SUNE), is at risk of being delisted from the New York Stock Exchange after one of its company’s yieldco partner, TerraForm Global (NASDAQ: GLBL), announced SunEdison might end up filing for bankruptcy after having to delay its annual report with the U.S. Securities and Exchange Commission for the second time which was expected by March 30th. Shares of SunEdison has plunged over 50% after the warning, while TerraForm Global Inc. tumbled over 20%.
“Additionally, SunEdison has not or may not be able to perform under other agreements, including agreements with respect to the pending contribution of the projects in Uruguay and India, which were part of TerraForm Global IPO portfolio, and the pending dropdown of the additional India project portfolio aggregating 425 MW purchased by TerraForm Global, LLC in the fourth quarter of 2015. If SunEdison does not perform under these agreements, it could have a material adverse effect on TerraForm Global. SunEdison and its subcontractors are continuing to perform substantially under the operations and maintenance contracts for our operating projects.” TerraForm Global reported. If SunEdison does not provide a quantified amount of capital to developments in Uruguay and India, then some of its projects may not be finished or transported to Global on time or at all.
TerraForm Global claims that under its management services agreement with SunEdison, its financial press and control processes depend on SunEdison. “SunEdison has not performed as obligated under the Management Services Agreement, in particular with respect to financial reporting and control matters,” reported on TerraForm Global’s 8-k which was the reason for its delayed 10-K.