Shares in solar energy company SunEdison are down 11% in after hours trading, as a rumour that sent the stock upwards during the day was denied.
The stock gained 7% during Wednesday’s trading session on a rumour that Blackstone planned to purchase the company, which has seen its stock fall 83% since the start of the year.
After the close Blackstone denied that it was looking to purchase SunEdison.
SunEdison’s stock fell 24% the day before as the market continued to express investors’ fear that the company would not have enough cash to cover its obligations to two yieldcos that it owns. Yieldcos are separate companies SunEdison created to own and operate its specific energy projects — and their financing arrangements are complicated.
More importantly, they’re expensive, and the company is holding a lot of debt. Already SunEdison has had to pay $US152 million towards a margin loan for one of its yieldcos, TerraForm.
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