TerraForm Global (GLBL) Files to Delay 10-Q Filing

TerraForm Global (NASDAQ: GLBL) filed a Form 12b-25 with the U.S. SEC on Tuesday to delay its 10-Q filing. With today's filing, the company said:

TerraForm Global, Inc. (the “Company”) is unable to timely file its Form 10-Q Quarterly Report for the quarter ended March 31, 2016 (the “Form 10-Q”) without unreasonable effort and expense. The Company’s delay in filing the Form 10-Q is due principally to the need to complete all steps and tasks necessary to finalize the Company’s financial statements and other disclosures required to be in the filing.

The Company has also not yet filed its Form 10-K for the year ended December 31, 2015 and is working to complete all steps and tasks necessary to finalize the financial statements and other disclosures required to be included in the filing. As the Company has previously disclosed, due to the services we receive from SunEdison, Inc. (“SunEdison”) under the Management Services Agreement, our financial reporting and control processes rely to a significant extent on SunEdison systems and personnel. As a result, if there are control deficiencies at SunEdison, including with respect to the systems that we utilize, it is necessary for us to assess whether those deficiencies could affect our financial reporting and related internal controls and, if so, address them to the extent necessary and appropriate prior to filing our Form 10-K for the year ended December 31, 2015. We are continuing to assess whether matters related to SunEdison's delay in its Form 10-K (including (a) SunEdison's identification of material weaknesses and additional procedures necessary to complete its annual financial statements and related disclosures and (b) the publicly disclosed findings of the investigation by SunEdison's independent directors and the related remedial plan) could affect our financial reporting and related internal controls.

To date, we have identified material weaknesses in the Company's internal control over financial reporting primarily due to (i) ineffective controls in the area of security and access to an accounting consolidation and reporting system implemented by SunEdison during the second half of 2015, specifically the design and maintenance of user access controls to ensure that access to the financial applications and data is adequately restricted to appropriate personnel, (ii) inadequate controls over general and administrative expenses as well as acquisition, formation and related costs, specifically completeness, accuracy and timely recording of expenses and equity contributions in the appropriate reporting period, and (iii) inadequate controls over regional reporting, specifically timely identification and resolution of complex transactions and appropriate application of policy or U.S. generally accepted accounting principles. We are working to remediate these issues as promptly as practicable. Based on our work to date and in light of other factors, including the risk that SunEdison will be unable to complete the remedial actions related to its internal investigation, we expect that it will be necessary for the Company to implement additional controls and procedures and take other remedial actions before we finalize our financial statements and other disclosures for the year ended December 31, 2015. The Company will not be able to file its Form 10-Q until it has completed and filed its Form 10-K for the year ended December 31, 2015. This process could require substantial time and resources, and we can provide no assurance that our ongoing review will not identify additional material weaknesses or other issues that would require remediation.

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