SunEdison Inc., the world’s largest renewable-energy developer, is preparing to file for bankruptcy protection in New York as soon as Sunday, according to a person with knowledge of the matter.
The company, which had $11.7 billion in long- and short-term debt as of Sept. 30, has arranged for bankruptcy financing that will be provided by first- and second-lien lenders, said the person, who asked not to be identified because the matter is private.
Ben Harborne, a SunEdison spokesman, declined to comment.
SunEdison is in talks with creditors to determine which businesses to keep and which to sell in bankruptcy, the person said. It has been trying to sell assets for months as it’s struggled with its liquidity.
The company’s fall is largely its own doing, the almost inevitable result of an ascent that was built on financial engineering. It went on a buying binge that spanned six continents and dramatically increased its size. But since July, its shares have lost 99 percent of their value as investors questioned its strategy.
The clean-energy provider has twice delayed filing its 2015 annual report. It also failed to make a $2.6 million interest payment on its 2 percent convertible bonds maturing in 2018. And the U.S. Department of Justice and the U.S. Securities and Exchange Commission are investigating its finances.
SunEdison yieldco units TerraForm Global Inc. and TerraForm Power Inc. have attempted to distance themselves from their parent. Earlier this month, TerraForm Global sued SunEdison, alleging that the parent misused its funds to repay a margin loan; the yieldco’s three-member conflicts committee authorized the lawsuit.
SunEdison also is dealing with a lawsuit from Vivint Solar Inc., a Utah-based rooftop solar company that it tried to buy for $1.9 billion.