SunEdison and TerraForm Delay Filing Reports Again

 

SunEdison, struggling under a huge debt load, said on Feb. 29 it had delayed filing its report by the original deadline while it conducted an internal investigation into its financial position.

 

That investigation has not been completed, SunEdison said on Wednesday.

 

TerraForm had given no specific reason for delaying its original report, saying only that it needed more time.

 

The companies were due to file their delayed reports on Tuesday.

 

SunEdison said the latest delay was mainly due to problems with new financial information systems, while TerraForm said it needed to assess whether SunEdison's IT-related problems and internal investigation could affect its own financial reporting.

 

However, TerraForm said it had also identified material weaknesses in its internal controls, including processes for validating revenue recognition.

 

The companies said they had not yet identified any material misstatements or need for restatements of their financial statements or disclosures.

 

SunEdison's shares were down 16.8 percent at $1.73 in premarket trading, while TerraForm's were down 12.3 percent at $9.25.

 

TerraForm is one of two SunEdison "yieldcos" - dividend-paying units that hold solar, wind or other power assets for the parent company.

 

SunEdison's other yieldco, TerraForm Global Inc, has also not filed its annual report.

 

The solar industry has been hit hard by the slide in oil prices, but SunEdison has its own problems.

 

As of Sept. 30, the company had outstanding debt of $11.67 billion, mainly as a result of an aggressive acquisition strategy that has raised concerns about its ability to access capital.

 

Up to Tuesday's close, SunEdison's shares had fallen more than 90 percent in the past 12 months while TerraForm's had dropped about 70 percent.