The Latin America Power investors believe they will win an arbitration fight for $150 million against SunEdison regarding its failure to close a $733 million buyout in 2015, the Wall Street Journal adds.
The shareholders have asked a New York court to set aside $150 million of SunEdison assets to ensure their availability, as the investors fear that SunEdison is nearing bankruptcy.
In court papers filed in New York Supreme Court, the shareholders claim SunEdison, which has endured a "stunning financial collapse" in its stock price, is "teetering on the edge of bankruptcy," and has allegedly said it would transfer assets away, the Journal notes.
The investors want to be certain that the assets will be available when it is time for them to collect.
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.SUNE data by YCharts