There is more bad news for SunEdison, the solar power company that’s seen its stock plummet 92% in the last year.
Bloomberg reported on Thursday after the market had closed that solar utility Hawaiian Electric Co. was cancelling contracts for three projects it had with the company, saying that SunEdison was way behind on construction and missed deadlines.
The Honolulu-based utility cited “SunEdison’s apparently precarious financial condition” in its decision to cancel the project’s power purchase agreements, or PPAs. The projects “had been in default under the PPAs and had not cured important missed milestones,” Hawaiian Electric said in the filing.
The company’s shares are down around 14% in pre-market trading.
In it’s filing, Hawaiian Electric cited concerns with SunEdison’s cash position as a reasons for terminating the relationship. Worries about cash are what sent the company’s stock falling in the first place.
Throw in some new fangled financial engineering and what you have is a market bloodbath.
These Hawaii projects were a big deal for SunEdison, because they were ultimately promised to DE Shaw, Madison Dearborn Partners and Northwestern University in a deal to forgive $336 million of debt the company owes to those institutions.
Business Insider Emails & Alerts
Site highlights each day to your inbox.