Goldman Sachs’s ‘Secret’ SunEdison Loan at Center of KKR Suit
- Banks hid 15% loan and margin-call triggers, investors say
- As bankruptcy ends, shareholder claims just getting started
Formerly the largest clean-energy company in the world, SunEdison was a sweetheart of investors in the years leading up to its April 2016 bankruptcy.
Photographer: Robert Nickelsberg/Getty ImagesAs SunEdison Inc.’s bankruptcy winds toward a close, a question lingers about the demise of what was once one of the U.S.’s most promising companies. What role did Wall Street’s biggest banks play?
Goldman Sachs Group Inc. in particular, along with Deutsche Bank AG and Morgan Stanley, were involved in a margin call and a “secret” loan that contributed to SunEdison’s collapse, according to lawsuits brought by dozens of investors including KKR & Co. and Pyramid Holdings Inc. The suits, just getting started, are now the main hope for shareholders wiped out by SunEdison’s reorganization plan approved last week.