Friday, April 15, 2016

SunEdison Enters Bankruptcy Loan Negotiations, Stock Down 37% (SUNE; DIP)

Following up on yesterday's "SunEdison Investigates Itself, Finds No Wrongdoing, Stock Jumps 75% (SUNE)".
The stock is a numerologist's dream: 36.9 cents, down 36.9%.

From Bloomberg:

SunEdison Enters Bankruptcy Loan Negotiations With Its Lenders
SunEdison Inc., the world’s biggest clean-power developer, is talking with creditors about restructuring financing, though it said the discussions are ongoing and there’s "no assurance" they will result in a deal.

The company and its first- and second-lien lenders entered into a confidentiality pact on March 17 for the financing transactions in a potential bankruptcy filing, the company disclosed in a regulatory filing to the Securities and Exchange Commission, which included a 34-page slide presentation to creditors.

The company will require a $310 million loan to fund it through a potential bankruptcy process, according to estimates in the March 17 presentation. The company projected using a total of $779 million in cash for the first quarter. It said it expects to reduce headcount by 50 percent from their October 2015 base with additional $150 million of non-labor savings.
Restructuring financing or debtor-in-possession loans, also known as DIP loans, give lenders control over the restructuring process.

The company’s publicly traded yieldco units TerraForm Global Inc. and TerraForm Power Inc. have both previously warned that there’s “substantial risk SunEdison will soon seek bankruptcy protection.” The company hired Skadden, Arps, Slate, Meagher & Flom as legal adviser and Houlihan Lokey as financial adviser for a potential restructuring.
The negotiations come as SunEdison faces default on at least $1.4 billion in loans and credit facilities, and after it failed to make a $2.6 million interest payment on its 2 percent convertible bonds maturing in 2018. The company is teetering on the edge of bankruptcy and analysts said the disclosure may please creditors....MORE
Today In SunEdison: Down 50% But Still Trading (SUNE)
Today In SunEdison: Stock Gets To UP 99.57% On the Day, Before Reversing (SUNE)
One of SunEdison's YieldCo's Says The Parent May File Bankruptcy (SUNE; GLBL)
SunEdison Is Being Investigated By The SEC, Stock Is Deer Nuts (SUNE)
And In Today's SunEdison News... (SUNE)

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