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Activist investor David Einhorn cut his SunEdison ( SUNE ) stake by more than half, dropping below a critical 5% threshold, according to a late Monday filing that followed fresh reports of a looming SunEd bankruptcy. On Friday, Einhorn trimmed his SunEdison shares to 2.8% from 6.8% in January, meaning he is no longer a beneficial owner required to file a U.S. Securities and Exchange Commission filing when he sells or acquires shares. Einhorn-owned hedge fund Greenlight Capital also cut its SunEdison exposure to 1.6% from 4% in January. Three months ago, SunEd gave in to Greenlight demands, allowing former Greenlight executive Claire Gogel to have a role as independent director on the board. Together, Einhorn and Greenlight own just shy of 18 million shares of SunEdison stock. In early trading on the stock market today , SunEdison stock dropped nearly 5% and was trading below 33 cents. Shares of yieldcos TerraForm Power ( TERP ) and TerraForm Global ( GLBL ), on the other hand, rose 2.1% and 0.4%, respectively. SunEdison stock is down 99% since last July, when it hit a seven-year high before announcing its plan to acquire residential installer Vivint Solar ( VSLR ). In December, amid increasing reports of SunEd’s financial troubles, Vivint scrapped the sale. TerraForm Power stock climbed Tuesday despite a new class action lawsuit filed by New York law firm Bronstein, Gewirtz & Grossman, with the plaintiffs consisting of shareholders who bought stock between May 7, 2015, and March 15. According to the complaint, “the defendants made materially false and misleading statements regarding the TerraForm’s business, operational and compliance policies.” On March 16, TerraForm Power missed a second deadline to file its annual 10-K. SunEdison and TerraForm Global also missed their 10-K deadlines. Both TerraForms now face the potential of being delisted from the Nasdaq. Scalper1 News
Scalper1 News