TerraForm Power, Global warned with de-listing (again)

NASDAQ has sent letters to both yieldcos warning them that the failure to hold annual general meetings in 2016 serves as an “additional” cause for de-listing, after late financial statements.

January 9, 2017 Christian Roselund

Image: TerraForm Power

TerraForm Power and TerraForm Global had a messy year during 2016, following the decline and bankruptcy of SunEdison. Citing complications arising from the web of business dealings with their sponsor, both companies only released their 2015 annual reports in December, and have managed to catch up with quarterly reports to the second half of the year.

Additionally, neither yieldco held an annual general meeting in 2016, and like annual reports this is a requirement for continued listing on the NASDAQ exchange. NADSAQ has sent plenty of letters to TerraForm Power and Global warning each of de-listing if they don’t file financials, but so far both yieldcos have been able to get extensions.

Today both TerraForm Power and Global reported another set of letters from NASDAQ, warning that the failure to hold an AGM is an additional basis for de-listing the company. The yieldcos have until January 11 to present their views, and after which NASDAQ may hold a hearing on whether or not to de-list the companies.

Both TerraForm Power and Global have stated that they intend to respond, but offered no additional details.

The clock may be ticking for both yieldcos. While Q1 and Q2 2016 financial reports were not as damning as 2015 for either company, both have warned about their ability to continue as going concerns, in particular due to the danger of being drawn into the SunEdison bankruptcy debacle.

TerraForm Power and Global have both expressed their interest in another company stepping in to buy out SunEdison’s share in the companies, and have stated that bids for this will be due some time this month.

And while a number of potential buyers and/or sponsors have expressed interest in the two companies, TerraForm Power and Global have given few hints as to who they hope to take over from SunEdison.

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