Sunedison Inc. (fka SUNEQ)

[FEED_THE_FOXES]

The telltale signs SUNE’s bankruptcy is terminal: 1) all assets are on the auction block. Reported cash bids of $422 million cover 86% of 4/2/2016 Project Pipeline. TERP and GLBL are to be put up for bid in Sep; 2) the company’s accounting problems are not being fixed. The last MOR was replete with disclaimers including non-compliance with GAAP. The Income Statement and Balance Sheet don’t foot and line items such as Intercompany Receivables and Paid-In-Capital defy definition; 3) the Company has underperformed and underspent on every cash flow projection since its filing. Projects under development are not being funded as forecast and support funding for sub dividends and interest expense has been pulled. The Company has accumulated $190 million in new Payables since it filed its petition. Any work done on credit for projects will be netted from cash proceeds on sales; and 4) little notice has been given to the new CEO’s incentive comp plan which states the objective is to “sell all” or almost all of the Company’s assets by October. Any notion that the Company has high value assets which were not disclosed in bankruptcy is ludicrous since it would be treated as fraud by the Court.
Many commenters here have compared SUNE’s bankruptcy to American Airlines. If you are going to use an airline bankruptcy for comparison Pan Am is the more appropriate example.