The SunEdison (NYSE: SUNE) company will be delisted from New York Stock Exchange. This is the consequence of the Chapter 11 bankruptcy duly filed by the company. The delist from NYSE will happen on May 17, as per the information the company has filed with the financial regulators.
Up and down
The SunEdison stock saw choppy waters in April, 2016. It negatived the stock's surge during the previous sessions. The surge happened after the company published the results of an internal accounting probe which found zero evidence or material misstatements that supports the occurrence of fraud.
Many analysts believed that the rally was result of the closure of large quantities of the bearish bets made on stock. The short interest, which states that prices could fall, spiked to a record 126.4 million shares. This happened during the closing days of March, and was equal to 40 percent of outstanding shares. Investors were already spooked about news that the company would go bankrupt.
The drop was largely due to the admission made by the company that it had met potential lenders in March and had signed a number of confidentiality agreements. The discussion topics were the debtor-in-possession financing which could be required of bankruptcy cases were filed. In its presentation to the principals by the company for its second term lenders, it admitted that the liquidity position of the company was compromised. It also mentioned a liquidity challenge for the shorter term.
The NYSE froze SunEdison's stock during April, 2016 itself. Its activities were stopped on April 21. The stock exchange has right when it comes to delist companies which have done bankruptcy filings. For SUNE stockholders, this announcement is a bitter end. The stock was previously valued at about $30 for every share during July, 2015. The stock was a even levels before SunEdison announced its requirement of the Vivint Solar company- the residential installer. The stock then begun collapsing and its value was reduced by 99 percent over subsequent nine months.
The SUNE shares dropped to 37 cents. Trading volumes increased to 132.6 million shares, double its average for a full day. According to FactSet, it also made the stock one of the most active of all stocks listed on American exchanges.
The SunEdison company is continuing its reorganization as per the Chapter 11 process. The company had announced the appointment of John Dubel, as its chief restructuring officer. Dubel is a known corporate restructuring expert.