warned March29 that parent SunEdison Inc.was at a substantial risk of filing for bankruptcy protection soon due to liquiditydifficulties.
The disclosurecomes as TerraForm Global delays the filing of its Form 10-K to investigate thesame deficiencies that impacted the annual filings of SunEdison and its sister companyTerraForm Power Inc.
The SunEdisonmanagement is seeking time to address "materialweaknesses" in its internal controls over financial reporting,which they say arises from deficient information technology controls in newly implementedsystems. TerraForm Power is also assessing the same issue.
TerraFormGlobal does not see a material impact on its liquidity position as a result of SunEdison'sdecision to seek bankruptcy protection though may be required to make acceleratedpayments on certain project-level debts as a result of such a decision.
Meanwhile,The Wall Street Journal reports that theSEC is investigating SunEdison for possibly misstating its liquidity position atthe end of the third quarter.
Executiveshad said during SunEdison's third-quarter 2015 earnings call that the business hadapproximately $1.4 billionin cash though sources told the Journalthat most of that amount was inaccessible to the company since they were"trapped" inside individual power projects and earmarked for construction ordebt service.
Withdirect access to only a "few hundred million dollars" through Septemberand October of last year, the balance had dropped to under $100 million by Novemberin 2015, sources said.