SunEdison (SUNE) needs more time to finish its homework and its yieldco, TerraForm Power (TERP), is getting in trouble, too.
On Wednesday morning, the Missouri-based renewable energy company announced that it had to delay filing its 10-K for 2015 with the Securities and Exchange Commission beyond its already extended due date of March 15, 2016.
Things took a more serious turn for TerraForm Power, which also failed to file its 10-K. Because of its failure to file, TerraForm Power received a notice of delisting letter from Nasdaq. TerraForm Power has until May 16, 2015 to submit a plan to regain compliance to Nasdaq. As a result of the those failures, shares of SunEdison and TerraForm Power were down as much as 28% and 20%, respectively, in premarket trading.
In a statement released Wednesday, SunEdison announced that its failure to file was due to "material weaknesses" in its internal controls tied to "deficient information technology." Late last month, the company announced that it had to delay filing its 10-K because of an internal investigation, launched late in 2015 after a former executive made allegations concerning the accuracy of SunEdison's financial position.
If the former executive's allegations end up being true, SunEdison may have to reassess its liquidity position as it may be weaker than previously anticipated, the company said in last month's filing.
Because TerraForm Power relies heavily on SunEdison's systems and personnel, "control deficiencies" at the parent company require the yieldco to also revisit its financials to make sure those deficiencies don't affect its own reporting.
SunEdison said on Wednesday its audit committee has not found any "material misstatements or restatements" of the company's audited or unaudited financial statements.
In recent weeks, SunEdison and TerraForm Power attracted attention due to the former's failed bid to takeover Vivint Solar (VLSR). The abandoned acquisition, which was worth $2.2 billion when announced in July, marked the beginning of a steep decline in the share prices of both stocks and inspired one lawsuit to block the transaction and another lawsuit after the deal failed.
Meanwhile, the latest delay in filing the 10-K means investors will have to wait even longer to truly understand the financial position of the SunEdison family of companies.
