SunEdison has filed for Chapter 11 bankruptcy protection in New York due to mounting debt and liquidity issues.
The US solar giant said it has started a process to restructure its balance sheet and shed non-core assets in an effort to continue operating.
To support this, the company said it has secured up to $300m in debtor-in-possession financing from a group of its lenders.
“Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues,” said SunEdison CEO Ahmad Chatila.
“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.”
SunEdison’s publicly-traded yieldcos, TerraForm Power and TerraForm Global, are not part of the filing.
Image: SunEdison
