SunEdison Investigates Self - Finds No Wrongdoing (Kinda); Defaults On Convertible Bond, Stock Soars 75%
'Nothing to see here, move along' is the message from embattled once-hedge-fund-darling SunEdison following its Valeant-esque self-investigation. Despite finding 'wrongdoing' by a former employee in talks over a failed acquisition and that its own executives fostered an "overly optimistic culture," SUNE officials found no misstatements in financial statements. The stocks is 75% higher in the pre-market on this 'good' news (remember BTU?). However, despite the kinda sorta wrongdoing, Bloomberg reports the renewable-energy company already teetering on the brink of bankruptcy, missed a bond payment this month.
As Bloomberg reports,
Counsel retained by SunEdison Inc. found wrongdoing by a former employee in talks over a failed acquisition and that its own executives fostered an “overly optimistic culture” that came from the top of the organization, according to a regulatory filing.
The world’s worst-performing and biggest renewable-energy developer said it will remedy the situation with tighter financial controls and with the appointment of a new Chief Financial Officer, Ilan Daskal, who started work on April 4 after Brian Wuebbels departed the position. Shares of SunEdison rose as much as 54 percent to 57 cents in pre-market trading in New York after closing at 37 cents on Wednesday.
SunEdison’s independent directors, according to the filing, identified “wrongdoing” by a former non-executive employee “in connection with negotiations over the termination of the Vivint Solar Inc. acquisition.”
The $1.9 billion Vivint acquisition was scrapped in March after SunEdison missed deadlines. It was canceled shortly after SunEdison initially revealed that it was delaying the filing of its 2015 annual report to address, in part, an internal inquiry into its accounting....MORE