Shares of SunEdison (SUNE) plunged 25.9% to $1.49 on Tuesday following a report from Debtwire that the troubled solar company was in talks with certain lenders to fund a debtor-in-possession facility.
Representatives from SunEdison did not immediately respond to Real Money's requests to confirm the report.
A debtor-in-possession facility is typically used by companies that are in financial distress. The debt is typically senior to existing debt and other claims and it provides the troubled company with liquidity as it restructures.
Debtwire wrote, citing sources familiar with the matter, that the Missouri-based SunEdison was asking holders of its second-lien loans, which total $725 million, to fund a debtor-in-possession facility, which could provide the company with "$300 million in new post-petition liquidity."
Debtwire also reported that the talks with lenders came about after discussions between SunEdison and the lenders to seek an out-of-court solution to address the company's leverage and liquidity problems fell apart.
The report comes a week after SunEdison delayed filing its 10-K for 2015 with the Securities and Exchange Commission for the second time. At the time, SunEdison said its failure to file was due to "material weaknesses" in its internal controls.