Thursday, November 19, 2015
SunEdison Closes Below $3 A Share
Sun Edison continues to experience financial problems. With a low stock price, Sun Edison is limited in using it's stock as collateral to borrow more money. Loans to existing lenders require putting up more collateral as the stock price continues to sink. They are also burning cash to build new generating plants that they have committed to, such as Georgetown's. When will they run out of money to complete the builds? Will they be able to operate the plants, which they will have to do as they will not be able to sell them to their subsidiaries as they don't have the money and cannot raise money by selling their stock, because their stock price is also depressed? So many questions that will be answered over time by the market.
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