Solar firm SunEdison is getting punished for the second day in a row.
The stock is down 10% on the news that the company is being sued by Latin America Power Holding B.V. for not completing a $733 million buyout, according to the WSJ.
LAPH shareholders want a New York judge to freeze $150 million of the company’s assets.
In court papers filed in New York Supreme Court Wednesday, the Latin America Power investors say SunEdison, which has suffered a “stunning financial collapse” in its stock price, is “teetering on the edge of bankruptcy,” and has allegedly said it would transfer assets away.
This is the last thing SunEdison needs. The stock started falling in July, when its attempt to acquire solar firm Vivint revealed to investors that the company may not have as much cash as they thought. The stock has fallen 90% in a year.
SunEdison is also dealing with legal action brought by billionaire investor David Tepper, of Appaloosa Managment. He has a stake in TerraForm Power, one of two of SunEdison’s sister company’s called yieldcos. Yieldcos act as utilities that manage and collect fees from the projects SunEdison builds.
According to Tepper, the Vivint deal would force TerraForm Power to purchase low grade assets.
A year in SunEdison below:
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