Sunedison Inc. (fka SUNEQ)

[eq001]

I found some recent disclosures quite surprising.

...They intend to operate as a zombie business [my characterization] into 2020; so as to maximize "earnouts" of prior SUNE projects. Personally I give them at most 8 months; since they are unlikely to have any actual significant business activity post the Brookfield consummation.

...They currently have 305 employees. I expected them to have at most two dozen left. However; they include Singapore employees in the total. IMO they will be required to disclose the number of US employees prior to confirmation.

...They removed indemnity requests for prior executives. IMO the included clauses remain much too broad. I am certain multiple objects will arise regarding the indemnity clauses included.

...I was purposely looking to see if they disclosed the fact that DOJ and SEC have open investigations. I am almost surprised they did include this disclosure. [Although they would be in serious legal jeopardy had they failed to disclose the investigations.]

...They disclosed that there were over 30 suits filed against them; the majority being subsequently joined and brought before Judge Castel.

...They did not include audited financials. IF they intend to seek a public ticker; IMO such an inclusion will be required. Rights Offering are often a means of bypassing the inclusion of financials; but only with the intent of being available to companies already making regular filings. It is an absolute requirement to include audited financials with a prospectus. Here any financials provided are likely to be scrutinized by the SEC and DOJ due to their still open investigations.