This post was updated at 2:30 p.m. ET to reflect additional information from the filing.
So much for SunEdison's (SUNE) recent rally due to incentive tax credits. The market has not forgotten that fundamental and operational issues remain at SunEdison and one of its yieldcos, TerraForm Power (TERP).
Shares of SunEdison were down over 25% early Tuesday, after David Tepper of Appaloosa Management delivered a letter to TerraForm Power in which he demanded an opportunity to review the company's books and records. Tepper, who maintains a 9.5% stake in TerraForm Power, believes the company breached its fiduciary duties to shareholders.
Many of the concerns listed in Tepper's letter are not new. However, in addition to asking for board minutes from TerraForm Power, Tepper also specified that he wanted access to minutes of meetings that dealt directly with TerraForm Power changing its outside counsel to Greenberg Traurig from Cleary Gottlieb Steen & Hamilton. It is not clear if the law firm resigned or was fired.
Tepper raised concerns about the family of companies earlier this month, after SunEdison made several changes to its board and management structure, following the sudden resignation of several board members. The changes were made on Nov. 20, but they were not announced until after the market closed on Nov. 27 -- which coincided with the Thanksgiving holiday weekend.
Tepper has also taken issue with how SunEdison's acquisition of Vivint Solar (VSLR) is being pushed onto TerraForm Power. The deal was recently amended to more favorable terms for SunEdison and TerraForm Power, but many still wonder if the deal is appropriate for TERP.
Earlier this month, Tepper called out SunEdison for hurting TerraForm Power's credit and stock price through its "ambitious growth objectives and overextended financial commitments." He said in a previous filing the deal appears to be motivated by SunEdison's desire to acquire Vivint's assets rather than SunEdison's desire to enhance the quality and value of TerraForm Power.
As of late-day trading Tuesday, shares of SunEdison recouped some of their losses and were down 18%.