SunEdison's Stock Plunges After TerraForm Warns Of Bankruptcy Risk

SunEdison Inc.'s stock plunged 40% in premarket trade Tuesday toward a record low, after its yieldco TerraForm Global Inc. said in a filing that there is "a substantial risk" that SunEdison will file for bankruptcy soon. The stock, which was the most active ahead of the open with 3.8 million shares traded, is set to trade below $1 for the first time since the renewable energy company went public in July 1995. "SunEdison has not performed as obligated" with respect to financial reporting, and has also not been able to contribute to projects in Uruguay and India, TerraForm said in a filing Tuesday. "In addition, due to SunEdison's liquidity difficulties, there is a substantial risk that SunEdison will soon seek bankruptcy protection." Separately, the Securities and Exchange Commission is investigating SunEdison's disclosures about how much cash it had on hand. Shares of TerraForm, which was spun off from SunEdison in July 2015, tumbled 20% premarket. SunEdison's stock has plummeted 75% year to date through Monday, while the S&P 500 has slipped 0.3%.