This story was updated on Friday, April 15, 2016 at 2:50pm ET.
Reports of SunEdison's (SUNE) coming demise have been confirmed.
On Friday, SunEdison said in a filing with the Securities and Exchange Commission that is has been negotiating debtor-in-position financing options with its first and second lien lenders for the past month. (Debtor-in-possession financing is typically used by companies going through Chapter 11 protection or a similar restructuring process.)
Meanwhile, on Friday afternoon, a spokesperson for SunEdison's yieldcos, TerraForm Power (TERP) and TerraForm Global (GLBL), confirmed that companies hired legal and financial advisors to help "prepare and develop contingency plans in the event SunEdison seeks bankruptcy protection."
Debtwire reported on SunEdison's talks with creditors last month, just days after the renewable-energy company entered into confidentiality agreements with its creditors on March 17.
Under conditions of a confidentiality agreement with lenders, SunEdison agreed to file a presentation publicly that gives more insight into its current financial position, as well as steps to rectify it. SunEdison has not yet released its fourth-quarter 2015 financial statements, however, and its failure to do so is believed to have put it in technical default on as much as $1.4 billion of its debt.
On Thursday, SunEdison announced that it has completed an internal review of its financial reporting and controls, and it declared that its executives were "overly optimistic" about its cash forecasting but were not guilty of "fraud or willful misconduct."
SunEdison announced its internal investigation earlier this year after a former executive made allegations that questioned the accuracy of its statements to the board about the company's anticipated financial position. Late last month, SunEdison confirmed that it was the subject of investigations on similar grounds by the Justice Department and the Securities and Exchange Commission.