Sun Edison Showing Signs of Stress

Sun Edison, the company that the city has under contract to provide solar generated electricity over the next 25 years is experiencing financial stress.  The stock price plunged 24% as investors found out that the company is bleeding cash at a higher rate than expected.

"Shares of SunEdison Inc slid 24 percent to a nearly two-and-a-half-year low on Tuesday after the U.S. solar company posted a wider-than-expected loss, raising fresh concerns about its ability to fund its operations, projects and acquisitions." Reuters

The company is terminating 15% of their workforce to try and stem the hemorrhaging of cash.  They are pulling back from building additional generating plants in some countries and they are no longer selling assets to their captive "yieldcos", which have been a source of cash for the company.

The deteriorating financial condition brings into question the company's ability to fulfill its contract obligations to Georgetown.  If the company is forced to declare itself bankrupt, then existing contracts are no longer enforceable.

Read the article at the link for more information about SunEdisons financial condition.