Businesses owe money from SunEdison apparently, ranging from Silicon Valley venture capitalists to a small Massachusetts solar installer. A controversial acquisition planning is believed to be responsible for the solar and wind energy company's financial woes.
SunEdison and its executives have been facing two-dozen legal claims since beginning of the year. Shareholders appear as the major plaintiffs, accusing the company for misleading them over its financial position, reports Reuters, citing a review report on cases by Westlaw as the source.
The reviewed lawsuits are yet to be adjudicated and claims wait for validation. Most of the cases are recently filed and SunEdison has been allowed to file a response. However, the renewable energy giant hasn't responded to requests for comment, according to a report published in Texas News.
The solar energy plant provider has also been facing a major lawsuit from solar installer Vivint Solar Inc. following its failure in completing the $1.9 billion acquisition deal. SunEdison has reported only two significant lawsuits during its annual regulatory filing in March last year, reports in USA News.
Around half a dozen of lawsuits have been filed claiming for breaching contracts from the partners' behalf since February. The silicon wafers maker for the solar cells has transformed into the world's fastest growing renewable energy plant developer within just a few years. It has nourished projects ranging from small family home to desert solar array. SunEdison stock has been witnessed to fall by around 98% during the last 12 months. Acute cash crunch, huge debt pile of $12 billion, as well as scrutiny from US regulators over the failed Vivint deal, all caused the company to tatter. The aftermath of partner lawsuits has caused deterioration in stock outlook after witnessing a shopping spree during 2014 and 2015, cites Pavel Molchanov, an analyst who follows the solar industry for Raymond James. Following forceful expansion of the solar plant giant, the company witness brink of bankruptcy or acquisition while struggling to keep up with its bills, continues Molchanov. The number of yet to be adjudicated lawsuits are not unusually high to file for bankruptcy. However, the variety of claimants suggests nervousness among creditors, opines Rick Antonoff, a bankruptcy attorney with Blank Rome LLP though not involved in SunEdison cases.
Join the Conversation