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SunEdison is plummeting in after-hours trading

Nov 19, 2015, 03:25 IST

Shares in solar energy company SunEdison are down 11% in after hours trading, as a rumor that sent the stock upwards during the day was denied.

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The stock gained 7% during Wednesday's trading session on a rumor that Blackstone planned to invest in the company, which has seen its stock fall 83% since the start of the year.

After the close Blackstone denied that it was looking to purchase a stake in SunEdison.

SunEdison YTDYahoo Finance

SunEdison's stock fell 24% the day before as the market continued to express investors' fear that the company would not have enough cash to cover its obligations to two yieldcos that it owns. Yieldcos are separate companies SunEdison created to own and operate its specific energy projects - and their financing arrangements are complicated.

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More importantly, they're expensive, and the company is holding a lot of debt. Already SunEdison has had to pay $152 million towards a margin loan for one of its yieldcos, TerraForm.

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