SunEdison says it is under federal investigation

Source: Christa Marshall, E&E reporter • Posted: Monday, October 17, 2016

The Securities and Exchange Commission is conducting a formal investigation of SunEdison Inc. after the solar giant filed for bankruptcy earlier this year.

In a filing this week, SunEdison said it had received a subpoena “seeking production of certain emails and other electronic communications.” It also has received subpoenas from the Department of Justice “seeking information and documentation relating to various matters.”

“The company and the board of directors intend to cooperate fully with the SEC and the DOJ,” the filing states.

The company received notice from the SEC of an informal inquiry in March.

SunEdison filed for Chapter 11 bankruptcy protection in April after piling up debt from an acquisition spree of solar and wind developers. At the time, the company said the decision would help it “right size its balance sheet and reduce its debt, providing the opportunity to support the business going forward.”

Since then, the company has laid off workers, sold some of its wind and solar projects, and faced some restructuring challenges. In August, a U.S. bankruptcy court declared that SunEdison is “hopelessly insolvent” and that it is highly unlikely the solar company will pay off its debts.