SunEdison, the solar company that has seen its share price crash 98% since last summer, is preparing to file for bankruptcy, according to The Wall Street Journal.
The news marks the latest, dramatic turn of events for the company, which at one time had been a Wall Street darling.
Hedge fund billionaire David Einhorn of Greenlight Capital pitched the stock as a long position at an elite investment conference in October 2014, while Leon Cooperman of Omega Advisors also had a position in the company.
SunEdison’s stock started plummeting in July 2015 after it announced that it would buy Vivint, a residential solar company. The deal led to questions over SunEdison’s cash position.
In the end, Vivint walked away from the deal, citing concerns over SunEdison’s ability to pull it off. Still, SunEdison’s share price kept falling.
Then, this week, one of SunEdison’s subsidiaries, TerraForm Global, announced that its parent was in danger of going bankrupt.
That sent SunEdison’s share price crashing, dropping to below $0.50. A year earlier, the stock was valued at more than $25.