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Case Code: FINC125
Case Length: 12 Pages 
Period: 2015- 2016    
Pub Date: 2017
Teaching Note: Available
Price:Rs.500
Organization : SunEdison
Industry : Solar Energy
Countries : U.S,World
Themes:   
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

The Fall of SunEdison-A Solar Eclipse?

This case won the Second prize in the oikos Global Writing Competition 2017 (Sustainable Finance track), organized by oikos Foundation for Economy and Ecology, University of St. Gallen, Switzerland.
 
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INTRODUCTION

 
On April 21, 2016, SunEdison Inc. (SunEdison), a global renewable energy company, filed for Chapter 11 bankruptcy protection. “Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues,” said Chief Executive of SunEdison, Ahmad Chatila (Ahmad). “The court process will allow us to right-size our balance sheet and reduce our debt.” On the same day, the NYSE (New York Stock Exchange) announced suspension of trading in SunEdison shares. SunEdison, which had had a valuation of $10 billion in June 2015, saw its market cap eroding by 100 times in a matter of nine months, making it a penny stock unavailable for trade on the NYSE. (Refer to Exhibit I for the Stock price chart of SunEdison and the Yieldcos) Over the years, SunEdison went on accumulating debt (Refer to Exhibit II for Financials of SunEdison). By 2016, the company had debt to the tune of $16 billion which included debt from its subsidiaries , TerraForm Power Inc and TerraForm Global Inc. Its listed assets amounted to $20.7 billion dollars as of September 30, 2015...

 

 
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