Needham & Company Latest to Drop Coverage of SunEdison (SUNE)

Needham & Company is dropping coverage of SunEdison (NYSE: SUNE).

Analyst Y. Edwin Mok commented, "We are dropping our coverage of SUNE with a final Hold rating, following multiple media reports suggesting SUNE is preparing to file for bankruptcy amid a cash crunch as the result of an over leveraged balance sheet and unclear accounting of its liquidity. With no other options for accessing additional liquidity, we believe bankruptcy is the only viable outcome for SUNE. We expect the company to sell-off the majority of its project pipeline in order to raise enough cash to repay the debt holders, but see a protracted Chapter 11 process due to multiple lawsuits, the SEC investigation and the DoJ subpoena. Assuming its yieldcos TERP and GLBL [both N/R] are able to unwind from SUNE and find buyers for SUNE's stake, we expect those entities to survive SUNE's bankruptcy."

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