What: Shares of SunEdison Inc (NASDAQOTH:SUNEQ) had another bad day on Thursday, falling as much as 15% after the company got bad news about a lawsuit.
So what: Shareholders of Latin America Power -- a company that SunEdison agreed to acquire for $700 million before backing out -- have sued the company to recover $150 million they feel they're owed. Today, a judge granted a temporary restraining order, barring the company from making unusual transfers that may move assets away from Latin America Power shareholders.
Now what: SunEdison is having its own financial difficulties trying to fund operations and fund the acquisition of Vivint Solar. Having assets tied up because of this lawsuit, and potentially losing $150 million in cash, could be a huge blow to the company.
Given all of SunEdison's problems, and the multitude of lawsuits it is having to fight back, I don't see any reason why the stock is going to recover in the near term. In fact, I think the odds of bankruptcy continue to rise everyday. SunEdison was built on a house of cards to begin with, and once its stock started its fall last year, there didn't appear to be anything stopping it. Now, counterparties like Latin America Power are fighting for the scraps that might be left from this former renewable energy giant.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.