SunEdison’s Subsidy-Fueled Collapse (more tax dollars flushed down toilet of green energy)

nat review ^ | 4/4/16 | r bryce

[doldrumsforgop]

Even $1.5 billion in subsidies and loan guarantees can’t save a “clean” energy company from bankruptcy. That’s the takeaway from the looming failure of SunEdison, a company that touts itself as the “largest global renewable energy development company.” Once a darling of Wall Street and the green Left because of SunEdison’s portfolio of wind and solar projects, the company’s stock is now in free fall. Furthermore, two related companies that were spun off from SunEdison — TerraForm Global and TerraForm Power — also appear to be in financial distress. On March 30, Brian Wuebbels, the CEO of both TerraForm companies, resigned effective immediately. If all that weren’t enough, the company is also under investigation by both the Justice Department and the Securities and Exchange Commission about its finances and the disclosures it made to investors. Last summer, SunEdison’s shares were selling for more than $30, and famous Wall Street investors, including David Einhorn and Daniel Loeb, were holding the stock. But by Friday afternoon, the company’s shares were trading for about 49 cents apiece, and Bloomberg writer Brian Eckhouse was reporting that the company was “teetering on the verge of bankruptcy.”

[doldrumsforgop]

stock price went from $30/share to 49 cents.

Entire company worth only 1/8 of what taxpayers shelled out in subsidies to it.

the govt is not picking winners and losers.

It is picking only losers.

[Oldeconomybuyer]

Shovel ready.

Spit.

[Leo Carpathian]

What? Cloudy days with no wind???

[Lorianne]

If you read the major news outlets on this story almost none of them mention the massive government subsidies given to this company and its subsidiaries.

Lying by omission as usual.

[Oldexpat]

They also leave out the failure of the technology and the fact that mandating purchases of power at above market prices further subsidizes them at the expense of rate payers.

[Oldexpat]

Stock is now 0.25 or so. Soon to be zero.

[cicero2k]

$1.5 billion is the lipstick.

Solar and wind energy is the pig.

Would not care except:

We paid for the lipstick.
The decision to do so was completely avoidable.

[Mouton]

Same thing for a darling car company.

[doldrumsforgop]

“Solar and wind energy is the pig.”

I agree, but I care not one bit for someone who desires to engage in financial stupidity with their own money. We see company failures every day, and a lot of people undertake risk. They have the right to be stupid or daring and, if they can convince other people with money to spend as well, that is their right.

How many times did Edison fail before he brought the new technology of incandescent light to us?

I believe it unacceptable, however to do so with my lipstick.

[Neidermeyer]

TerraForm Global Inc on Monday sued controlling shareholder SunEdison Inc for misappropriating $231 million of TerraForm Global’s cash, days after hedge fund billionaire David Tepper made similar accusations against the struggling renewable energy company.