News that SunEdison, the world's largest solar energy manufacturer, is in debtor-in-possession talks with creditors of $725 million in second lien loans, sent the stock down almost 20% on Tuesday.
The talks were first reported by Debtwire.
The stock has fallen 93% over the last year, with the sell-off starting in July when SunEdison attempted to purchase Vivint, the second largest residential solar company.
The deal has since been canceled, which the market liked. The end of that deal freed up more cash for the company. However the fact that SunEdison is in talks with these creditors means that things are still not on the up and up.
And it means this story isn't over.
Here's the day chart:
Yahoo Finance