TerraForm Power and TerraForm Global, the “yieldcos” of bankrupt solar company SunEdison, said on Thursday they would delay filing their third-quarter earnings reports.
TerraForm Power and TerraForm Global have said they had identified “material weaknesses” in their internal controls over financial reporting and that they would have to implement more controls and procedures to finalize financial statements for the 2015 annual report.
SunEdison (sune) has also delayed its annual, first-quarter and second-quarter filings after identifying “material weaknesses” in its financial reporting, primarily related to problems with a newly implemented IT system.
The company has also said it was conducting an internal investigation into its financial position.
TerraForm Power and TerraForm Global said in September they were exploring strategic alternatives, including a sale of their entire business.
Brookfield Asset Management, which in June expressed interest in acquiring SunEdison’s stake in TerraForm, said in regulatory filing earlier in the day that it had met with the companies and their advisers to discuss possible deals.
One option discussed was Brookfield replacing SunEdison as sponsor of the units, purchasing Class A and Class B from stockholders and the yieldcos remaining listed entities.
Alternately, Brookfield would purchase 100% of the companies for cash.
However, Brookfield said nothing was agreed and no specific prices were discussed at the meeting.
“Yieldcos” are publicly traded units that hold renewable energy assets, including those bought from the parent company.