SunEdison In Talks for Potential DIP Financing
Struggling solar energy company SunEdison Inc said on Friday it was in talks for potential debtor-in-possession financing with some of its first and second-lien lenders.
SunEdison, which is widely expected to file for bankruptcy soon, said it needs about $310 million to continue in operation as it estimates a cash shortfall of $260 million in June.
The company's shares, which have lost nearly all of their value in the past 12 months, were down 23.6 percent at $0.44 in premarket trading.
SunEdison said it expects to secure the financing by pledging assets, including those of its units.
The company, which has racked up about $12 billion in debt following an acquisition spree, said it had entered into confidentiality agreements with lenders on March 17.
Debtwire first reported in March that SunEdison is in talks with holders of its second lien loans to fund a DIP facility.
The company, which plans to reduce operating costs to $400 million or below, also said it had cut 40 percent of its jobs since October and was aiming to halve its headcount.
(Reporting by Arathy S Nair in Bengaluru)
