Solar developer SunEdison in bankruptcy
SunEdison Inc, once the fastest-growing U.S. renewable energy company, filed for Chapter 11 bankruptcy protection on Thursday after a short-lived but aggressive binge of debt-fueled acquisitions proved unsustainable.
In its bankruptcy filing, the company said it had assets of $20.7 billion and liabilities of $16.1 billion as of Sept. 30.
SunEdison’s two publicly traded subsidiaries, TerraForm Power Inc and TerraForm Global Inc, are not part of the bankruptcy. In a statement, the companies, known as yieldcos, said they had sufficient liquidity to operate and that their assets are not available to satisfy the claims of SunEdison creditors.
The bankruptcy “will present challenges,” however, including with financing agreements for certain projects, the yieldcos said.
The Chapter 11 filing caps SunEdison Chief Executive Officer Ahmad Chatila’s seven-year quest to transform a struggling maker of silicon wafers into a renewable energy giant able to capitalize on burgeoning demand for solar and wind energy amid growing concerns about climate change.
Chatila was named CEO of what was then called MEMC Electronic Materials in 2009 and almost immediately bought fledgling solar project developer SunEdison. The company changed its name four years later and embarked on a rapid expansion that included entering new businesses like wind and energy storage and taking on projects worldwide. That growth racked up billions of dollars of debt.
Solar industry watchers said the bankruptcy was not a reflection of the sector, which is growing rapidly.
“SunEdison had a balance sheet that is way out of line with any other solar company,” said Shayle Kann, senior vice president and renewable energy research firm GTM Research. “The projects themselves are good. They just bought too much to quickly.”
The company said it secured up to $300 million in new financing from its first-lien and second-lien lenders, which is subject to court approval. The money will be used to support SunEdison’s operations during its bankruptcy.
Originally a silicon-wafer manufacturer established in 1959 as the Monsanto Electronic Materials Company, a former business unit of Monsanto Company, Monsanto sold the company in 1989. Prior to May 30, 2013, the company was known as MEMC Electronic Materials; the name change to SunEdison reflects the company’s focus on solar energy. SunEdison’s corporate headquarters are in Maryland Heights, Missouri, and the company’s operational and solar headquarters are in Belmont, California with offices throughout the world.
an interesting history for this company..a few well known names pop up..
all the free money in the world couldnt keep them afloat..they got greedy..
“The company changed its name four years later and embarked on a rapid expansion that included entering new businesses like wind and energy storage and taking on projects worldwide. That growth racked up billions of dollars of debt.”
when the music stops somebody misses out on a chair..