March 31, 2016 / 9:36 PM / 3 years ago

SunEdison served DoJ subpoena on Vivint Solar deal

(Reuters) - Struggling solar company SunEdison Inc said it received a subpoena from the U.S. Department of Justice seeking details related to its failed deal to buy Vivint Solar Inc and transactions with its two publicly listed units.

SunEdison shares fell about 4 percent in extended trading on Thursday.

The company, in a regulatory filing, said the DoJ had also sought information on the “conduct of a former non-executive employee who is alleged to have committed wrongdoing in connection with the Vivint termination negotiations.”

Early in March, solar panel installer Vivint terminated the cash-and-stock deal - worth $2.2 billion when it was forged in July last year - after SunEdison failed to close on the planned acquisition.

The DoJ also sought details on investigations by SunEdison’s audit committee, transactions between the company and its “yieldcos” - TerraForm Power Inc and TerraForm Global Inc - and financing of its Uruguay projects.

SunEdison said it had also received an “informal inquiry” from the U.S. Securities and Exchange Commission “covering similar areas.”

The heavily-indebted company is at “substantial risk” of bankruptcy, TerraForm Global warned on Tuesday.

SunEdison has delayed filing its annual report twice, saying it has identified material weaknesses in its financial reporting controls.

SunEdison’s shares were trading at 52 cents after the bell.

Reporting by Anet Josline Pinto in Bengaluru; Editing by Kirti Pandey

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