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Here’s Why Shares of SunEdison Are Getting Clobbered Today

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Workers installing SunEdison solar panelsPhotograph by Robert Nickelsberg—Getty Images

Solar company SunEdison (SUNE) said it had delayed filing its annual report beyond the extended due date after identifying material weaknesses in its financial reporting controls, sending its shares down 8% during morning trading on Wednesday.

SunEdison “yieldco” TerraForm Power (TERP), whose shares were down 6%, also said it had delayed filing its annual report for the second time.

Both reports were due on Tuesday.

SunEdison said earlier this month it had delayed filing its annual report while an internal investigation was conducted into its financial position.

That investigation has not been completed, SunEdison said on Wednesday.

The latest delay is mainly the result of problems with newly installed financial information systems, the company said.

TerraForm said on Wednesday it needed to assess whether the IT-related problems and investigation at SunEdison could affect its own financial reporting.

 

However, the company said it had also identified material weaknesses in internal controls, including processes for validating revenue recognition.

TerraForm is one of two SunEdison “yieldcos”—dividend-paying units that hold solar, wind or other power assets for the parent company.

The companies said they had not yet identified any material misstatements or need for restatements of their financial statements or disclosures.

Up to Tuesday’s close of $2.08, SunEdison’s shares had fallen more than 90% in the past 12 months. TerraForm’s shares had fallen about 70%, closing at $10.55.