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SunEdison misses bond payment, faces default

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SunEdison misses bond payment, faces default

missed a $2.6million bond payment earlier in April, Bloomberg News reported, raising newconcerns about a company that already faces technical default for failing toprovide financial statements on time.

Thebond payment due April 1 was on SunEdison's 2% convertible notes due in 2018,according to Bloomberg. The news service on April 13 said the trustee,Wilmington Trust Corp., confirmed the missed payment on April 11. A grace periodextends through May 1.

ASunEdison spokesman did not immediately respond to a request for comment April13.

SunEdisonmissed a March 30 deadline to file its annual financial report. Under a letterof credit, an event of default would be declared after a 15-day cure period.

"Missingan interest payment is structurally a big event in the credit markets,"CreditSights analyst Greg Jones said in an email. "Missing financialfiling deadlines is definitely a concern, but those dates can be renegotiatedwith lenders … [But] not having cash to pay interest is typically more serious."

Itis not clear if SunEdison was able to negotiate an extension to the filingdeadline. The letter of credit was for $750 million. As of Sept. 30, 2015,SunEdison had $716million of outstanding third-party letters of credit backed by the facility.