is preparing tofile for Chapter 11 bankruptcy protection in the coming weeks and is in talkswith two creditor groups for a loan that would fund operations during theprocess, The Wall Street Journalreported April 1, citing "people familiar with the matter."
, one ofSunEdison's yieldco affiliates, said in a Form 8-K filed March 29 that therewas a "substantial risk that SunEdison will soon seek "
Creditorscould end up taking control of SunEdison and its portfolio of power projects,according to the WSJ's sources. Agroup of senior bank lenders led by Deutsche Bank AG are competing with another group ofcreditors, mostly hedge funds focusing on distressed companies, to provide thebankruptcy loan, delaying an agreement.
SunEdisonyieldcos TerraForm PowerInc and TerraForm Global do not intend to file for bankruptcyprotection, according to the report.
TheU.S. Department of Justice recently subpoenaed SunEdison for information related tofinancing activities for the acquisition of Vivint Solar Inc. and the conduct of a former employeewho had allegedly committed wrongdoing in connection with the of Vivintnegotiations. The SEC is also investigating the company over similar reasons.