April 21--Solar power company SunEdison Inc. said Thursday it has filed for Chapter 11 bankruptcy protection.
Chief Executive Ahmad Chatila said in a statement the decision was "a difficult but important step to address our immediate liquidity issues."
"The court process will allow us to right-size our balance sheet and reduce our debt, providing the opportunity to support the business going forward while focusing on our core strengths," he said.
Once a darling of the solar industry, SunEdison -- which develops and manages renewable power plants -- went on an acquisition spree, buying up assets and amassing $11.7 billion in debt on projects worldwide. Analysts said its gambles didn't end up paying off.
The Maryland Heights, Mo., company, which also has solar headquarters in Belmont, Calif., has lost $9.2 billion in equity and seen its stock price plummet.
One red flag was SunEdison's announcement in July that it would acquire residential solar system provider Vivint Solar for about $2.2 billion. At the time, SunEdison said the addition of Vivint's rooftop solar portfolio would grow the company's residential business.
But it all fell apart eight months later when Vivint said it terminated the deal because SunEdison had failed to meet its obligations under the agreement.
SunEdison said it has secured commitments for new capital up to $300 million in debtor-in-possession financing, which will allow it to support day-to-day operations such as continuing to provide service to customers, paying employee benefits and wages and compensating vendors and suppliers.
SunEdison's two publicly traded yieldcos, TerraForm Power and Terra Form Global, are not part of the filing.
News of the filing was first reported by Bloomberg.
Adding to the company's woes, SunEdison said three weeks ago that it was facing scrutiny from the U.S. Department of Justice and the Securities and Exchange Commission on questions surrounding its financing practices and how much cash it had on hand when its stock meltdown occurred.
San Diego Union Tribune staff writer Rob Nikolewski contributed to this report.
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