- Company didn't make $2.6 million payment due April 1
- May `trigger cross-defaults in other debt obligations'
SunEdison Inc., the renewable-energy company already teetering on the brink of bankruptcy, missed a bond payment this month.
The company was supposed to pay $2.6 million April 1 on its 2 percent convertible bonds, which are due in 2018, according to data compiled by Bloomberg. SunEdison has a grace period through May 1.
The trustee, Wilmington Trust Corp., confirmed April 11 that the payment was missed, according to data compiled by Bloomberg.
Not making the payment “means SunEdison is likely in technical default,” Greg Jones, an analyst at CreditSights, said in an e-mail Wednesday. Failure to cure by May 1 “could potentially trigger cross-default provisions in other debt obligations.”
About $256 million remains on the bonds. They were issued in December 2013 and are currently trading at about 9 cents on the dollar.
Ben Harborne, a SunEdison spokesman, declined to comment Wednesday. A spokesman for Wilmington Trust didn’t immediately return a call seeking comment.
SunEdison is already facing technical defaults on at least $1.4 billion in loans and credit facilities because of its failure to file its 2015 annual report. The company amassed $11.7 billion in debt by Sept. 30, and now faces inquiries into its financial status from an internal audit committee, the U.S. Department of Justice and the U.S. Securities and Exchange Commission.