(Reuters) - Solar company SunEdison Inc SUNE.N said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors of renewable energy company Latin American Power.
SunEdison’s shares fell as much as 33 percent to $1.37, hitting its lowest in more than 14 years.
SunEdison said in October that it terminated a deal for Latin American Power five months after agreeing to buy the company, which owns wind and hydropower projects in Chile and Peru.
The restraining order also affects SunEdison’s yieldco TerraForm Power (TERP.O), SunEdison spokesman Ben Harborne said on Friday.
“The judge’s order will remain in place pending a hearing on Feb. 25 and does not affect either company’s ability to conduct normal business operations,” Harborne said in an email.
Latin American Power shareholders have argued that SunEdison “could suddenly and rapidly become insolvent” or move to dissipate assets before the court could act on their claim for $150 million for the termination of the deal, said the Wall Street Journal, which first reported the order.
The order was issued by New York Supreme Court Justice Charles Ramos on Thursday. (on.wsj.com/1PFUmKC)
Reporting by Amrutha Gayathri and Anet Josline Pinto in Bengaluru; Editing by Don Sebastian