Forbes: SunEdison a Financial Engineering Frankenstein

Dec 6, 2015

Call them hedge fund hotels or financial engineering Frankensteins, their complexity and leverage are being looked at with fresh eyes by both rank-and-file investors and hedge fund billionaires.


Sunedison Inc Falls After Two Class Action Lawsuits Filed

Dec 4, 2015 - Earlier today, Goldberg Law PC announced that it has filed a class action lawsuit against Sunedison Inc. (NYSE:SUNE). The law firm thinks that the renewable energy company has misled investors about its financial position through its statements.

In addition to that, the company also failed to highlight its ability to continue the acquisition spree. The lawsuit has requested investors, who bought Sunedison stock between June 16 and October 6, and have incurred a loss greater than $1 billion, to become a part of the lawsuit by February 1, 2016.....................


New investor may file claims against TerraForm Power, SunEdison

December 3 - A hedge fund headed by billionaire David Tepper on Wednesday reported a 9.25% stake in TerraForm Power (NASDAQ:TERP) and said it is exploring potential claims of impropriety against both the yieldco and its parent SunEdison (NYSE:SUNE).

In a letter to TerraForm Power’s board, Appaloosa Management LP expressed its dissatisfaction with the “unfortunate departure” from the yieldco’s initial business model, caused by its agreement to buy a 523-MW rooftop photovoltaic (PV) portfolio from SunEdison once the latter closes its acquisition of residential solar firm Vivint Solar (NYSE:VSLR).

The hedge fund believes that the purpose of the particular deal is to promote SunEdison’s desire to acquire Vivint’s development and operating assets and has nothing to do with enhancing the quality and value of TerraForm Power’s holdings......................

SunEdison and its executives face legal action over potential violations of federal securities laws, after it subtly reclassified $700 million of its debt



Hopefully the Maine media will see fit to write about this company's current situation in the same way we saw press coverage every time First Wind cooked some hot dogs for a snowmobile club. Will the company be able to honor its financial obligations or will Turbine-Rot become a permanent fixture on our mountains and hills?

Forever Defiled: Heaps of Rotting Rubbish on Maine's Sacred Mountains

SunEdison Plunges 33%; Debt Remarks Trouble Analysts

Today’s news brings some potentially troubling findings about the company’s debt position.........the subject of several ongoing shareholder lawsuits related to its common stock and the acquisition by SUNE and TERP. This is listed as a risk in both the VSLR and SUNE 10-Q, which could cause the acquisition to be delayed.”.........All this follows disclosure via federal filings last week that showed activist hope Third Point exited its holdings in the shares in the most recent period, and that Greenlight Capital reduced its stake.


SunEdison Surprise? - $739 Million in Extra Recourse Debt? (Bloomberg)

On Monday, the analysts highlighted another tidbit that will surely not be welcome news for SunEdison; an apparent reclassification of more than $700 million worth of debt from "non-recourse" to "recourse," meaning the company's lenders now have access to additional SunEdison collateral. SunEdison has about $12 billion of debt on its balance sheet, with some $3 billion of that amount listed as recourse to the company, according to Deutsche Bank analyst Vishal Shah and Jerimiah Booream-Phelps.



Sun Edison: Most disastrous big hedge fund trade of 2015 (Forbes)

SunEdison's Big Slide: When Financial Engineering Goes Wrong

It’s the most disastrous big hedge fund trade of 2015. A highly leveraged, deal-hungry stock with a management team cheer-leaded by prominent funds that sought to use a complex financial structure and spongy capital markets to stay a step ahead of a fast-changing industry. Now the stock is crashing, exposing issues of leverage that are causing capital markets to pull back, clouding the company’s financial picture...........


Sun Edison: Investors Turn Out the Lights (Barrons)

When we cast a cold eye last year on the shares of SunEdison, they were going for 20 bucks apiece and Greenlight Capital’s David Einhorn was telling his hedge fund’s investors that the solar-power developer should be worth $35 a share (“Shining a Light on SunEdison’s Growth Strategy,” May 5, 2014)..............The just-reported results for the September quarter haven’t reassured anyone. The company lost $287 million, or 91 cents a share and has more than $10 billion in debt. Gordon Johnson has a new price target: $2.

To read the story, simply Google: Sun Edison: Investors Turn Out the Lights

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Comment by Robert Goldman on December 5, 2015 at 8:47am
Oh, the 'poor' babies. LOL! Now take your useless heaps of garbage off our mountains. If the liars at SunEdison can be sued, why not Gov. Baldacci, Angus and his boyfriend, and the state officials and legislators who foisted this destructive scam on the people of Maine, our mountains and wildlife?
Comment by Jim Wiegand on December 4, 2015 at 8:35pm

Most of the real money is funneled off through shadow corporations all connected like a big spider web. Some of these companies even lend  the money.

Comment by Eric A. Tuttle on November 19, 2015 at 6:42pm

Recourse debt is a debt that is backed by collateral from the borrower.

While mortgages in the US are typically non-recourse debt, a foreclosure or bankruptcy can trigger the loan to become recourse debt at the request of the lending institution.

► Source ◄

Comment by Donna Amrita Davidge on November 18, 2015 at 11:04pm
First wind please dry up and go away- mismanaging $ on the verge of collapse- leave Maine alone.
Comment by Eric A. Tuttle on November 18, 2015 at 8:46am

This was the remake Of the artwork posted that I had intended to place with my previous comment. Depicting the losers at the top with Maine lands and real jobs on the sidelines, and the occupants of this house of cards. Notice that those from Maine or once so, receiving the payouts at the top. Though this is likened to ENRON (an energy sector corporation also) this smells of ENRON (too) II --

Comment by arthur qwenk on November 17, 2015 at 10:41pm

Are any of the  political imbeciles  that support wind in Maine   surprised by this ?

The party is over for the graft involved with wind in Maine  if  citizen Mainers would only look at this news and speak out!

Hey Angus, can you read, your son needs to get a new job! Where will you buy him one now!

Maine  energy slime bureaucrats like Kurt Adams have bailed  from SunEdison.

Comment by Eric A. Tuttle on November 17, 2015 at 6:30pm

It seems there is sufficient Graft or corruption within the House of Cards, with those on the outside of this corrupt structure are taking a hit on this financially, meaningful jobs, and our quality of life well into the future. A structure that through corporate manipulation of our government and bribes to certain initial objectors can be re-enforced until its ultimate collapse.

First Wind was in financial trouble, Emera Maine knew this and bailed. SunEdison bought Debt or commitment to debt. It continued to do so, with nearly every Wind venture it acquired. When realization of their errors became apparent they formed a Yieldco. A tool to provide funds to cover their debts or obligations while the new investors were unknowingly purchasing nothing of value, but rather meeting obligations on a company already owned by SunEdison shareholders.

Much like cosigning a loan of refinance for a relative on a home they just sold...... You get the loss, while they get double the money, while the home is owned by someone else. Watch for SunEdison to become a foreign national company when the new Trade Agreements are in place. One that the U.S. may have no jurisdiction over as to any obligations.

Comment by Pineo Girl on November 16, 2015 at 12:14pm

Lets not forget that First Wind got $700 million in ARRA grants from our Federal government (second to only to Iberdrola ).  I am sure US DOE does not want more "Solindra" type egg on their face!

Comment by Barbara Durkin on November 15, 2015 at 5:50pm

Boston-based UPC First Wind founded by Brian Caffyn has been sold to Sun Edison (SUNE) where MassCEC (ratepayer- funded-arbitrary-green-investment-scheme) CEO Alicia Barton has accepted a job. 

Within 3 months of purchasing First Wind, SunEdison (SUNE) value dropped by 71.4%, and 1,000 green jobs were lost. 

Of First Wind business history, affiliates and subsidiaries...

Regulations in place in Massachusetts that favor publicly-funded green initiatives are the product of Boston-based wind developer First Wind CEO Paul Gaynor former Massachusetts Governor Deval Patrick’s appointed Co-chair of “The Climate  Protection Advisory Committee” under the Global Warming Solutions ActFirst Wind Paul Gaynor is also co-chair of the Mass Department of Environmental Protection Advisory Committee “Low Carbon Energy Supply Subcommittee.”  Gaynor served on the working group for the Mass Ocean Management Plan, the first of its kind in the nation. 

Where's the due diligence?  Deval Patrick appointed UPC First Wind CEO Paul Gaynor as green policy Advisor to the MA Executive Energy Secretary after July 15, 2008?!?

July 15, 2008

"First Wind served with a civil subpoena by the New York State Attorney General seeking documents to substantiate First Wind’s alleged improper benefits to public officials. First Wind is under criminal investigation by NYS Attorney General Andrew Cuomo for allegations of improper dealings with public officials and anti-competitive practices."

July 15, 2008

The Press Republican

"We've had a number of complaints from counties all over the state, from Franklin all the way over to Erie," said John Milgrim, spokesman for Attorney General Andrew Cuomo.”

Franklin County District Attorney Derek Champagne was among "DAs from eight counties, public officials and citizens" who bombarded Albany with complaints about Noble and Massachusetts-based First Wind, formerly known as UPC Wind, he said"

(When the affiliate was created):

Southern California Edison:

Italian Vento, EcoElectrica, ISAB Energy, and CPC Cogen are indirect subsidiaries of Edison Mission Energy, a “Class A” affiliate (i.e., subject to the Rules).

Resolution E-3539 specified that the following information be provided upon the creation of a new affiliate:

New Affiliate Name: Italian Vento Power Corporation 4 S.r.l.

Date this affiliate was created: March 15, 2000

Headquarters: via Circumcallazione 83100 Avellino, Italy

Primary Officers (Directors): Marco Ferrando, Clive Warden (EME representatives)

James Houston, (partners representative)

Brain Caffyn, (partners representative)

Oreste Vigorito (partners representative)

Contact for CPUC: James A. Kelly, (626) 302-2284

Intended Function: To build, own and operate wind power plants in Italy for the purpose of selling electricity at a profit…”

Fast forward, same "wind power plant" with partners' representative Brian Caffyn, with IVPC partner's representative Oreste Vigorito in 2009, the subject of this article clip-  

'President of Italian Wind Energy Association arrested for fraud'

By Red Nek Engineer

By Guy Dinmore in Financial Times, November 12, 2009

Italian finance police, mounting an operation code named “Gone with the wind”, yesterday said they had arrested two of the country’s most prominent businessmen in the wind energy sector. Police said the charges related to fraud involved in obtaining public subsidies to construct wind farms. They are also investigating the sale of wind farms to foreign companies.

Italian finance police, mounting an operation code named “Gone with the wind”, yesterday said they had arrested two of the country’s most prominent businessmen in the wind energy sector.

Police said the charges related to fraud involved in obtaining public subsidies to construct wind farms. They are also investigating the sale of wind farms to foreign companies.

Oreste Vigorito, head of the IVPC energy company and president of Italy’s National Association of Wind Energy, was arrested on Tuesday in Naples. Vito Nicastri, a Sicilian business associate, was arrested in Alcamo, Sicily..."


Senate of the Republic (Italian: Senato della Repubblica) is a house of the bicameral Italian Parliament. 

Source:  Senate of the Republic -125- Chamber of Deputies


"The operation "Gone with the Wind", conducted by the Public Prosecutor of the Re-

Republic at the Court of Avellino and which was already required

the indictment of five persons for participation in Association

criminal (art. 416 Criminal Code), fraud and attempted consumed (art. 640-bis

cp) against the State, aimed at finding public funding

lic for the construction of wind farms


, Marks the return to the scene

Crime finalized the unlawful exploitation of wind energy Nicastri

Vito, along with other characters dell'avellinese. These, in order to tip


House of Representatives

- 126 -




Cfr. Request for indictment of Proc. Republic of Avellino n.1091 /

07 + 803/09 RG News of the crime of 2:11:09. Doc. No. 431/1.

Page 15

black unduly the facilities provided by the decree-law on October 22

1992 n. 415, converted, with amendments, into law on December 19

1992 n. 488, entered into fictitious transfers of surface rights or AF

rents on land intended for installation of wind turbines; then, with the

complicity of unfair bank officials approntavano false investigations

bank about solvibilita` of society as well as applicant and co

false technical reports on the full usefulness of land for wind farms. In

In the meantime the society Sicilian Wind Srl, a rl Cooperative Duecci and Wind

South Srl, belonging to Nicastri, gave way to society avellinesi

IVPC Sicilia 2 Srl and IVPC Sicily 4 Srl, belonging to Vigorito

Oreste, the branches of the company related to wind power, but later were pro-

learned in bank notes of "termination" or "cancellation" of the contracts AF

dense and disposal of surface apocryphal signature of the owners of terms

kidneys, thanks to which the society transferee camped a claim

force majeure in the delay allegedly innocent state

progress of the work on time, getting When so the extension

24 to 48 months of the deadline for the construction of the plants.

A cio` be added that the judicial reports in recent months of

the year 2010 brought to public attention some as last

teriori events related to contracts for wind energy; Dia, in fact,

in September it seized assets for 1.5 billion euro to

an entrepreneur originally from Alcamo, the lord of the wind, as defined

The Financial Times, fearing that even the nominee of the boss

mafia Matteo Messina Denaro...."

Mr. Caffyn served as Director or Partner of Italian Vento Power Corporation (IVPC), Srl, IVPC 4, Srl. (Italian Vento Power Corporation), IVPC 6, Srl, IVPC 2000, Srl., IVPC Energy B.V., IVPC Energy 3 B.V., IVPC Energy 4 B.V., IVPC Energy 5, B.V., IVPC Energy 6, B.V., IVPC Energy 7, B.V., IVPC Gestione, Srl, IVPC Management, Srl, IVPC Management 2, Srl and IVPC Marche, Srl. Mr. Caffyn served as Director or Partner of IVPC Marche 2, Srl., IVPC Puglia, Srl, IVPC Service, Srl, IVPC Service 2, Srl, IVPC Service 3, Srl, IVPC Service 4, Srl, IVPC Service 5, Srl, IVPC Service 6, Srl, IVPC Sicilia, Srl., IVPC Sicilia 2, Srl., IVPC Sicilia 3, Srl., IVPC Sicilia 4, Srl., IVPC Sicilia 5, Srl., IVPC Sicilia 6, Srl., IVPC Umbria, Srl., IVPC Wind, Srl, UPC International Partnership CV, UPC International Partnership CV II, XET Holding Co., LLC

Comment by Dudley G. Gray on November 15, 2015 at 8:23am

I've been studying SUNE financials for a few weeks, and trying to figure out what newspaper in the State   might somehow publish a warning to the towns about the deals they have been promised in exchange for being bought off by SUNE. But alas, except for the Ellsworth American I can find no daily that isn't in the pocket of the wind industry. and in the case of the Bangor Daily carries water for the industry,Roxanne Quimby and Mark Eves almost daily.  To my friends in  Eastbrook who have been promised the moon here is my analysis. You will never see 18.4 million from First Wind/ Sun Edison. Even though S&P rates SUNE a strong buy ,the company's stock price has dropped from $33 to $5 in less than a year. It has lost an average of $3.51 per share in each of the last five years and S& P estimates a loss of $3.00 for 2016.  Debt to equity is 65% but I see many phantom assets that will never be monetized. If the good people of Eastbrook, Bingham and Roxbury don't listen to me they should listen to our own Professor Richard Hill who has forgotten more about energy than anyone in this state knows. Once the subsidies to the wind industry are eliminated and the developers are bankrupt, who will be responsible for cleaning up the physical and financial mess created by the crony capitalists?  You and me our kid and grandkids, thats who.

                                 Dudley Gray

                        Rangeley Plantation

Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."


Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power


Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT


(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.”

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We have the facts on our side. We have the truth on our side. All we need now is YOU.

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 -- Mahatma Gandhi

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Vince Lombardi 

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