This piece was updated on Apr. 1, 2016, at 8:25 a.m. ET to include Appaloosa's increased stake in TerraForm Power.
SunEdison's (SUNE) future just keeps getting cloudier.
Shares fell as much as 11%, to less than $0.50, in after-hours trading Thursday after the company disclosed that it was subpoenaed by the Justice Department earlier this week.
This revelation is the latest blow to the Missouri-based solar energy company, whose shares have plunged nearly 98% over the past year, following a failed bid to acquire Vivint Solar (VSLR).
According to a filing with the Securities and Exchange Commission, the Justice Department is seeking information about a wide range of SunEdison's recent activities, and the company's financial activities around its planned acquisition of Vivint tops of the list.
The Vivint deal is just one item on the DOJ's plate. It is also investigating the conduct of a former employer who was involved in Vivint negotiations; SunEdison's own internal audit; transactions between SunEdison and its yieldcos, TerraForm Power (TERP) and TerraForm Global (GLBL); and financing of SunEdison's projects in Uruguay.
SunEdison also said that it was subject to a similar investigation by the SEC.
This is just the latest development in an already difficult week for SunEdison. TerraForm Global said Tuesday that it had to delay filing its 10-K because of problems at its parent company. (SunEdison has not yet filed its 10-K.) It also said that SunEdison had a "substantial risk" of filing for bankruptcy.
Then on Wednesday, news emerged that Appaloosa Management, which has a 9.5% stake in TerraForm Power, filed an amended suit against SunEdison in a Delaware court for its undue influence over the yieldco. The suit called for the removal of TerraForm Power's board. Appaloosa's wishes were somewhat granted when it was also announced Wednesday that Brian Wuebbels had stepped down as CEO of both yieldcos. He had served as SunEdison's CFO until earlier this month.
On Friday, Appaloosa announced, via a filing with the SEC, that it increased its stake in TerraForm Power to 10.9% on March 29. The purpose behind the increased stake is to help fulfill the objectives listed in Appaloosa's amended suit.
It may be April 1, but there's nothing funny about what's happening at SunEdison or to its remaining investors.
