Image source: SunEdison.

What: Shares of yieldco TerraForm Global Inc (NASDAQ: GLBL) fell 13% on Tuesday as the company's parent company slipped closer to the edge of the financial abyss.

So what: SunEdison is rumored to be in negotiation with creditors for debtor-in-possession financing, basically meaning it doesn't have the cash to pay its own bills. This could be a step toward an eventual bankruptcy filing, something the company has been moving closer to for months.  

For TerraForm Global, a bankruptcy at SunEdison could have unknown negative consequences. Moody's recently downgraded TerraForm Global's stock on fears that a SunEdison bankruptcy could lead to bankruptcy at the yieldco. Until the company goes through the process, it's impossible to know if that will actually be the case.

Now what: With TerraForm Global's dividend yield now over 33%, investors are certainly not convinced the company is as safe as a yieldco should be. With uncertainty about its ability to pay that dividend long term, and its own viability if SunEdison goes into bankruptcy, it's a very high-risk stock. Until investors get some more certainty about the future of both SunEdison and TerraForm Global, including its annual earnings release for 2015, this isn't a stock I would gamble on.