NEW YORK (TheStreet) -- SunEdison (SUNE) stock is down by 41.88% to 74 cents in pre-market trading on Tuesday, after TerraForm Global (GLBL), one of the company's two "yieldcos," warned that the renewable energy company is at "substantial risk" of bankruptcy.
SunEdison has failed to meet financial reporting obligations and has been unable to contribute to projects in Uruguay and India, TerraForm Global said in a filing, according to MarketWatch. Additionally, the company's liquidity problems put it at risk of seeking bankruptcy protection soon.
Shares are being further weighed down by an SEC investigation into whether SunEdison exaggerated its liquidity position last fall, the Wall Street Journal reported. The company told investors it had more than $1 billion in cash at the time, even though shares had plunged by 75% since midsummer.
SunEdison's market value has declined to roughly $400 million from nearly $10 billion in July, the Journal added.
Shares are set to open below $1 for the first time since going public in July 1995, MarketWatch notes.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
SunEdison's weaknesses include its generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: SUNE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.