SunEdison YieldCos Delay Filing Their Earnings Reports Again

November 11, 2016, 9:32 AM UTC
Solar Modules
HAMILTON TOWNSHIP - JUNE 2: Contractors install 1248 photo voltaic modules on top of a Kohl's Department Store roof June 2, 2010 in Hamilton Township, New Jersey. The project is part of a SunEdison Corporation contract with Kohl's, a nation-wide department store. Electricity generated by the solar modules will cut Kohl's usuage on average by 25-30 %. SunEdison, based in Beltsville, Maryland, uses 10-15 types of modules depending on availability. Chinese-made modules are used at this site. Kohl's signed a 20-year contract with SunEdison to receive electricity at reduced rates from the public utility company. State and federal tax incentives help individuals and commercial enterprises cover costs of solar module installations. SunEdison is North America's largest solar energy supplier. (Photo by Robert Nickelsberg/Getty Images)
Photograph by Robert Nickelsberg/Getty Images

TerraForm Power and TerraForm Global, the “yieldcos” of bankrupt solar company SunEdison, said on Thursday they would delay filing their third-quarter earnings reports.

Both companies are yet to file their annual reports for the year ended Dec. 31, their first-quarter and second-quarter 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.