SunEdison Inc (SUNEQ) CFO Fired as Bankruptcy Fallout Continues


SunEdison Inc (OTCMKTS:SUNEQ) announced its bankruptcy last month, and the aftermath continues. The solar firm told the SEC that its first quarter earnings would be delayed. It also confirmed that it had given CFO Brian Wuebbels a formal 30-day notice of termination.

SunEdison Inc Troubles Continue

On April 21, SunEdison filed for chapter 11 bankruptcy protection. The aftermath will now see the troubled solar firm shut down corporate operations. This is something that will be lengthy and difficult to perform over the next several months.

SunEdison Solar (SUNE)

The firm told the SEC that it would have to delay its first quarter financials. Due to the intricacy of the filing, the earnings – Forms 10-K and 10-Q – would have to be postponed. It’s expected to be delayed until it can file its annual 2015 report.

“The complexity of completing the Form 10-K and the Form 10-Q has increased substantially compared to the prior periods due to the company’s previously disclosed filing of a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code,” the firm wrote in Form 12b-25.

What we know so far about its Q1 earnings is that it has a lot of debt. Because of its buying spree, SunEdison accumulating $11.7 billion in debt as part of its six-continent expansion.

In addition to delaying its filings, SunEdison announced the departure of CFO Brian Wuebbels. He also served as Chief Administration Officer and Chief Accounting Officer. Wuebbels was given a formal 30-day notice of termination of employment. During his remaining days, he will report to John Dubel, SunEdison’s chief restructuring officer. Ilan Daskal will stay on as the company’s CFO designee.

In March, Wuebbels said he would step down from his position and take his talents to the firm’s yieldco, TerraForm Power Inc (NASDAQ:TERP) to serve as CEO.

What Else You Need to Know About SunEdison Inc Today

Many investors are worried that SunEdison’s two yieldcos – TerraForm Power and TerraForm Global Inc (NASDAQ:GLBL) – could follow it into bankruptcy.

These fears were amplified last week when TerraForm Global was hit with a default notice. The yieldco still has not filed its 2015 annual report. It will have 90 days to comply with bondholders’ demands. If not then it will have to pay hundreds of millions dollars in debt six years before they were due.

In the event of default, bondholders could request payments in full. It’s estimated that there’s more than $760 million outstanding on the issue.

But if you thought bondholders had it bad then you should look at India. According to a new report from EY’s Renewable Nergy Country Attractiveness Index, SunEdison’s bankruptcy could impact India the most. The solar firm has about 700 megawatt (Mw) of solar capacity commissioned in India, and another 1.7 gigawatt (Gw) presently under development.

SunEdison is looking to fulfil its obligations in India. But the bankruptcy means it likely won’t meet its targets. The deadline of 2022 will likely be delayed by several years. As it tackles bankruptcy, debts and other projects around the world, India will probably take a backseat to other pressing matters.

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