- TerraForm Global (GLBL -4.1%) and TerraForm Power (TERP -0.2%) get notices of default from bondholders for failing to file their 2015 audited financial statements on time, according to SEC filings (I, II).
- Delivery of the notices on May 31 starts the clock ticking on a 90-day period that could leave the companies at the mercy of lenders.
- TERP's default warning notices involve $1.25B worth of bonds, while GLBL received a default notice from the trustee for the bondholders for $760M worth of senior notes.
- The two companies have previously said the delays are due in part to SunEdison (OTCPK:SUNEQ), which provides systems needed to complete the reports.
- The TerraForm companies are major creditors of SUNE, which filed for Chapter 11 bankruptcy in April.