Credit Suisse Sounds Concerned About SunEdison's Investigation, Filing Delay

Credit Suisse's Patrick Jobin maintained a Neutral rating on

, with a price target of $3. Sunedison and

announced on February 29 that they would be delayed in filing their annual 10K reports. Sunedison also disclosed that a new board investigation was now underway regarding claims from former employees regarding the company's liquidity position have been conveyed incorrectly to the board, and possibly to the public as well. "The time required to handle the litigation matters, and complexity from the recent restructuring, were also cited as factors for the delay," Jobin mentioned. The analyst explained that according to Sunedison's filing, the investigation was started in late 2015 into "the accuracy of the company's anticipated financial position previously supplied to the board." While no wrongdoing has so far been discovered, the investigation is still ongoing. Jobin expressed concern regarding how capital has been raised by the company in January without disclosing this inquiry and board investigation. On the other hand, the analyst pointed out that the stock had rallied following the request for preliminary injunction barring TerraForm from acquiring the

being denied on February 24. In addition, Jobin mentioned that on February 29, "Appaloosa reminded the market that the lawsuit is still pending by requesting an expedited trial to determine if TerraForm Power disregarded shareholder interests by acquiring the assets and committing to a take-or-pay agreement." The legal uncertainties regarding the agreement continue, potentially complicating Sunedison's attempts to secure financing.