| SunEdison May Go Bankrupt Toy Town deal in danger? |
| Damien Fisher News Staff Writer WINCHENDON — The financial news is getting worse for SunEdison, the troubled solar energy company working with the town on a solar project slated for the capped landfill, as reports of a looming bankruptcy started coming out on Tuesday. Multiple news outlets reported that SunEdison is facing the possibility of filing for bankruptcy protection as it struggles with nearly $12 billion of debt. Reuters reports that if SunEdison does file for bankruptcy, it would be the largest filing involving a nonfinancial company in the past 10 years. The company was already under pressure to file 2015 financial reports by the end of March or face defaulting on about $1.4 billion in loans and other credit sources. Then, on Monday, the Wall Street Journal reported that SunEdison is being investigated by the U.S. Securities and Exchange Commission for allegedly overstating its cash position. “I’m trying to find out what this means for Winchendon,” said Town Manager Keith Hickey. SunEdison is supposed to be building a solar energy array on about 12 to 18 acres of the town’s capped landfill, producing discounted energy for town and school buildings. The 20-year deal with Winchendon, renegotiated last year, is supposed to net the town about $12 million. Winchendon’s solar array has already been delayed for the past five years, after the original deal was first struck between Winchendon and Axio. SunEdison bought out Axio six months after the original deal was signed, but the project never progressed much beyond initial planning and site work. Without any of SunEdison’s financial strife, the array cannot go forward anyway at this time because of the Massachusetts net metering cap. The cap limit on the amount of solar energy that can be generated in the state has been reached, and barring an increase set by the state Legislature, no new projects can be built. The contract with SunEdison allows Winchendon to seek payments from the company if construction deadlines are not met. If the company does go into bankruptcy, it is not clear if Winchendon will be able to enforce those deadlines. SunEdison’s stock was trading at 50 cents a share on Tuesday, a record low for the company. Shares were trading at $32 as recently as July. |
My Name is Paul H Cosentino. I started this Blog in 2011 because of what I believe to be wrongdoings in town government. This Blog is to keep the citizens of Templeton informed. It is also for the citizens of Templeton to post their comments and concerns.
So how deep are the taxpayers of Winchendon into this project?
ReplyDeleteA million or 2? If so who the people in charge were sure didn't get stung only the taxpayers. Money out the window?
The bigger they are the faster they fall. Sounds like they are about to fall and crush a few in the path. Winchendon for 1 i would think.
With a stock value of 75.00 per share in 2008. 52 week high of 33.45 and a 52 week low of only .43 one would say the ship has sunk and investor's are all but gone.
ReplyDeleteWhy is it a subsidized thing like solar can not make a go of it.
Look at the giant solyndra with 500 million from washington to work with went under and the chinese came over bought it for peanuts or less.
The people of Winchendon have a right to view the contracts for this and it should be all out in the open so they know what happened and who was in charge when the deals were done. Did the former town manager know there was trouble with Sunedison? Did the research get done to see the value of the company drop. This has been a company in turmoil for some time and should be no surprise this was going to be the end soon.
ReplyDeleteAt least our new school will purchase mounting brackets for the roof if we wish to purchase panels after the projects done.
So how much will Solar panel roof bracket we don't have a plan to use cost?
All schools should be mandated to have them with the panels to produce the power used