At this point, I’m not sure what the perfect metaphor for SunEdison (OTC:SUNEQ) is. Is the bankrupt solar energy company like a prizefighter in the 12th round, beaten and bloodied but refusing to go down? Or is SunEdison more like a zombie, back from the dead to cause major problems for us humans?
For one, SunEdison is certainly doing some fighting… against its own shareholders. In court papers filed on Tuesday, the company argued that its bankruptcy amounts to “hopeless insolvency,” meaning that its shareholders should not have a committee representing them during the Chapter 11 process. SunEdison also said that it faces more than $4.2 billion in debt.
SunEdison is also looking to offload some of its projects as a way to generate some much needed cash. Apparently, the company has identified eight projects in India that it would like to sell, and it has reached out to solar competitors of all sizes to make the deal. The eight projects have a total capacity of 1,318 MW.
Furthermore, an SEC disclosure filed on Tuesday reveals that a bankruptcy court has approved an additional $300 million in financing for SunEdison. The company and its creditors adjusted their existing debtor-in-possession agreement to allow for the additional funds.
SunEdison claims that the new money will allow it to continue operations, minimize disruption to projects, and make operational changes. The agreement modification also lowered several of the interest rates that SunEdison will pay its creditors.
Perhaps the right metaphor for SunEdison right now is a whiny kindergartener. The company is certainly kicking and screaming. It is shaping up to be a long and convoluted Chapter 11 period for SunEdison, so here’s hoping it can figure out a solution that’s best for its employees and shareholders.
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