Report: SunEdison Has Retained Law Firm As Bankruptcy Counsel

Sunedison Inc SUNE may have retained a bankruptcy counsel, according to a report on SparkSpread, a news outlet focused on energy financing and trading in real time.

The headline from SparkSpread read, "Exclusive: SunEdison said to retain bankruptcy counsel. SunEdison is understood to have retained a law firm as bankruptcy counsel."

At time of publication, further details regarding the counsel have not surfaced, nor has Sunedison confirmed the reports.

Timeline Of Events

Between 2011 and 2015, SunEdison took on $10 billion in new debt.

• February 12: Hawaiian Electric filed a document stating that SunEdison was in default and "had not cured important missed milestones."
• February 19: Hawaiian Electric canceled its contract with SunEdison.
• March 1: Axiom's Gordon Johnson cut his price target on SunEdison, citing the company would miss its mid-February preferred dividend payment.
• Early March: SunEdison's fall gained momentum when news broke that its deal with Vivint Solar Inc VSLR had been terminated.
• March 23: Axiom's Johnson again cut his price target on SunEdison.
• Late March: Reports began circulating that SunEdison was in talks with second lien holders. "'SunEdison is in negotiations with holders of its second lien loans to fund a DIP facility,' two sources familiar with the matter told the outlet. The reporter added that the second lien investor group includes holders of ‘aggregated USD 725 million Libor + 1000bps second lien term loans A-1 and A-2, both of which come due in 2018.' These talks are an attempt by the creditors to reach an ‘out-of-court solution' to SunEdison's liquidity and leverage problems, adding that the company is also searching for a DIP loan, Debtwire said," Benzinga reported.
• March 28: It was revealed that the SEC is looking into SunEdison's liquidity disclosures. Subsequently, the stock fell from $1.26 to $0.57, and has continued its descent since.
• Last week of March: In the same week, news broke that SunEdison is under a subpoena from the DoJ.
• April 1: a Dow Jones report said that the company had plans to file for bankruptcy protection in the near future.
• April 4: Dow Jones says bankruptcy is imminent.
• Tuesday: Needham's Edwin Mok removed his Hold rating on SunEdison and said that not only will the stock sell for "pennies," but bankruptcy is the only possible outcome for the battered name.