T-REX Market Update 4/1/2016
- T-REX CEO, Benji Cohen, interviewed about SUNE
- USA Today: SUNE dives on Tuesday
- Fears of bankruptcy and investigations from the SEC drove SUNE to close 55% down to $0.57 from Monday’s close of $1.26.
- SunEdison faces a “substantial risk” of bankruptcy, according to the U.S. Securities and Exchange Commission filing by a subsidiary, TerraForm Global.
- Liquidity continues to be the biggest issue facing the company.
- WSJ: SunEdison faces investigation from the SEC.
- Officials in the SEC’s enforcement unit are looking into whether SunEdison overstated its liquidity last fall when it told investors it had more than $1 billion in cash. The company is also apparently working with advisers on a potential bankruptcy filing. SunEdison’s market value has fallen to around $400 million from nearly $10 billion in July.
- People familiar with the matter said that SUNE’s reported $1.4 billion cash figure consisted largely of cash that SunEdison couldn’t access, including cash trapped inside individual projects and earmarked for construction or debt service.
- The figure also included a roughly $500 million credit facility, whose funds could only be accessed by delivering projects that met certain criteria, of which SunEdison had few, some of the people said.
- SUNE had direct access to only a few hundred million dollars throughout September and October, and by November, the balance had dropped under $100 million, the people said.
- Utility Dive: C&I storage set for strong growth
- Energy storage in the commercial and industrial areas is poised for growth over the next decade, with Navigant now predicting revenues from the sector will reach $10.8 billion by 2025.
- The largest growth will be in the industrial building segment, which the firm expects will deploy 9.3 GW of storage capacity in the next 10 years. Office buildings and educational facilities will follow with large deployments as well, the report noted.
- GTM: The impact of the ITC extension on the U.S. storage market
- GTM Research expects an additional half a gigawatt of storage paired with renewables to come on-line between 2016 and 2020, compared to a scenario with no tax credit extension.
- Though storage alone doesn’t qualify for the ITC, if installed with solar PV or wind, energy storage systems historically have been able to claim tax credits, as long as they meet certain requirements.
Written By Robert Bray, T-REX Associate