From Bronte Capital:
Sun Edison disclosure practice
I have - on the grapevine - been sent a research report from Credit Sights on Sun Edison. "The title: Sun Edison and Terraform: Dual 10Q cut. Recourse?"Previously on the "we all make mistake but ya gotta fess up channel":
It is complete with the usual suggestion that there is debt at Sun Edison that is both (a) recourse to the parent company and (b) does not have sufficient and allocated cash left to settle it.
That is the central question with Sun Edison. Bears suggest that Sun Edison has parent company debt that they do not have the wherewithal to pay. The company has steadfastly denied this. They state all debt is either (a) non-recourse or (b) has well determined cash flows that will be used to pay it. Alas certain debts have shifted from the non-recourse to the recourse column.*
I confess I am concerned with the Credit Sights note. I own Sun Edison stock which I purchased in distress (about $9). This was after it lost two thirds of its value....MORE
..Until he explains his silence on SunEdison.