NEW YORK (TheStreet) -- TerraForm Global (GLBL) stock declined 6.84% to $2.18 in Monday's trading session after the yieldco sued its parent company SunEdison (SUNE) regarding renewable-energy projects in India, Bloomberg reports.
In November, SunEdison asked TerraForm Global for $231 million to complete the Indian projects, which would then be owned by the yieldco.
However, the projects were underfunded and behind schedule, and SunEdison instead allegedly used the funds to support its "flagging liquidity position," TerraForm Global officials said in the suit, according to Bloomberg.
TerraForm Global is now requesting to have its interests in the projects protected through a trust and is seeking an undecided amount of damages from SunEdison.
Additionally, SunEdison will file for Chapter 11 bankruptcy protection in upcoming weeks, the Wall Street Journal reports.
Although its two yieldcos, TerraForm Global and TerraForm Power (TERP), do not plan to file for bankruptcy protection, they depend on their parent company for many services and a bankruptcy filing would negatively impact the two entities.
Shares of TerraForm Power plunged 7.73% to $9.07 and SunEdison stock tanked 50.93% to 21 cents today.