SunEdison is delaying its annual financial report as it awaits the resolution of two internal investigations of the company.
The troubledsolardeveloper announced Monday night that it will push back the release of its 10-K while an audit committee looks into allegations made by former executives that leadership misrepresented SunEdison's financial position. That inquiry was launched at the end of 2015.
In a filing notifying investors of the delay, SunEdison said the investigation into those allegations "has found no wrongdoing." It is still ongoing, however.
SunEdison's audit committee is in the middle of a second investigation related to the company's financial health. According to the filing, "current and former employees of the company" have questioned whether SunEdison issued inaccurate information about its "anticipated financial position."
SunEdison warned investors about the consequences if auditors find problems with the company's financial reporting.
"If some or all of the allegations made by these former executives and current and former employees are determined to have merit, management may be required to reassess the Company’s liquidity position as well as the disclosures in the Form 10-K, including whether the Company may require greater liquidity than previously anticipated and/or whether the sources are sufficient to meet its requirements," wrote SunEdison.
Analysts at Deutsche Bank suspended ratings of the developer.
"We believe the liquidity situation of the company is difficult to assess and as such we are suspending our rating on both SUNE and TERP [TerraForm Power]," wrote Vishal Shah and Jerimiah Booream-Phelps in a Deutsche Bank research note.
Analysts at Oppenheimer Equity Research said they would "step to the sidelines" and wait for SunEdison's liquidity situation to become more clear.
"We continue to see a robust market for renewable energy assets with at least two dozen active buyers and believe SUNE's portfolio contains significant value. However, with an unclear liquidity picture and questions about financial controls, we step to the sidelines, as we note that either issue could severely limit SUNE's ability to raise capital -- which is core to its business model," wrote Oppenheimer's Colin Rusch and Noah Kaye.
SunEdison faces other legal challenges as well. David Tepper, billionaire founder of the hedge fund Appaloosa Management, is suing the company. Tepper, who owns 10 percent of SunEdison's YieldCo, TerraForm Power, says that the developer is pushing too much debt onto TerraForm by requiring it to buy residential solar assets from Vivint.
Last week, Vivint Solar shareholders approved SunEdison's $1.9 billion acquisition of the residential solar company.
SunEdison shares hovered at $1.50 this morning after markets opened. In July, SunEdison's shares peaked at over $32.
Listen to the Energy Gang's most recent discussion about SunEdison's wild ride. (The segment starts at 27:40.)