Thursday, January 21, 2016

SunEdison Buys "High" and Sells "Low"

In January 2015, SunEdison Inc. bought 2.1 gigawatts of wind and solar assets for $1.9B, part of the company’s multibillion-dollar, six-continent push to become the world’s biggest clean-power developer. A year later, SunEdison is planning to hand four of those solar projects right back to the previous owners in a deal that will let it wipe out $336 million in debt.Link

Clearly this is another act of desperation to try and keep the company in business.  However, buying assets for near  $1.9B and selling for $336 million is a recipe for disaster!  The amount and complexity of financial engineering going on at this company is truly mind-boggling.

Read the entire analysis at the link above.

1 comment:

  1. Boy. This is beginning to look like Enron all over again. Someone must be getting a lot of cash somewhere. I do not think it is Georgetown.

    ReplyDelete