SunEdison has officially filed for bankruptcy. Would it affect its manufacturing partners in Taiwan? The overall impact seems to be little, according to Taiwanese companies. As for Tainergy, they have hired a lawyer to handle the issue.
Due to high financial leverage ratio and slower-than-expected progress for YieldCo investment, SunEdison has filed for insolvency in Manhattan federal court on April 21st, with a debt reaching US$ 10 billion. Although the bankruptcy will have little impact on the industry as a whole, there are still assets to be sold off as well as bad debt problems to be solved.
For Taiwanese companies, TSEC indicated that it has no business relationship with SunEdison recently, and thus the bankruptcy has no effect on them. Neo Solar Power (NSP) said that SunEdison still has an overdue payment of $ 0.46 million, but it will not have much impact either as the amount will be fully recognized by the company. Gintech also declared that SunEdison’s insolvency will have limited effect upon them.
Tainergy, on the other hand, was significantly affected by SunEdison’s bankruptcy. The company said that SunEdison owes them about US$ 11 million, representing almost 4% of the company’s total asset in the end of the year. In order to protect the interests of the company, Tainergy has hired a lawyer and will track down SunEdison’s restructuring progress. The possible losses will be processed after discussing with their accountants and lawyers.