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Internal investigation delays SunEdison annual results

So far the investigation has found “no wrongdoing” based on the accusations levelled at the company, according to the filing. Source: SunEdison.

Embattled renewable energy developer SunEdison has delayed reporting its annual results citing an ongoing internal investigation.

In a stock exchange filing on Monday evening, the company said that its audit committee’s ongoing probe, the result of issues raised by “a current and a former employee”, must be completed in order for it to file accurate results.

The filing states: “If some or all of the allegations made by these former executives and current and former employees are determined to have merit, management may be required to reassess the Company’s liquidity position as well as the disclosures in the Form 10-K, including whether the Company may require greater liquidity than previously anticipated and/or whether the sources are sufficient to meet its requirements.”

So far the investigation has found “no wrongdoing” based on the accusations levelled at the company, according to the filing.

“The Company is working diligently to prepare and file the Form 10-K, including completing the processes related to such filing and an assessment of the Company’s financial position,” it continued.

“The complexity of completing the Company’s Form 10-K has increased compared to the prior year due to the restructuring decisions previously disclosed and the additional turmoil in the energy sector.”

On Tuesday morning, Deutsche Bank announced that it would cease issuing ratings on both SunEdison and its yieldco Terraform. "In light of the recent accounting investigation, we believe the liquidity situation of the company is difficult to assess," it said in a research note.

SunEdison avoided an injunction last week by activist investor Appaloosa Management attempting to block its acquisition of residential solar installer Vivint Solar.

Earlier in February the company said it expected one-time impairment and restructuring charges totalling US$437 million in its fourth quarter, 2015 results due to closing down its polysilicon plant in Pasadena, Texas and selling its Malaysian wafer facility to Longi Silicon Materials. 

Tags: sunedison, finance, vivint, usa

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