The decision to buy a residential solar provider was out of SunEdison’s core business, which mostly consist of developing utility-scale solar projects. Now the company might have to sell some of these projects in order to get rid of mounting debts (~$10 billion).
GTM reports that “teams within SunEdison” are tasked with looking at selling-off portfolios of projects.
The company’s stock plunged by 72% during the last 3 months – starting not long after the company purchased Vivint.Monday morning the company sent out a press release announcing the restructuring process to investors. They justify the layoffs as a way to “simplify its business structure by removing duplicative activities created as a result of recent M&A activities and business growth”. The company will also focus on “high profit-potential markets” which they identify as the U.S, India, China and Latin America.
SunEdison’s stock increased by 4% in pre-market trading following the press release,
CEO Ahmad R. Chatila and CFO Brian Wuebbels are scheduled to discuss the new strategy in an investor presentation Wednesday, October 7.