Vivint Terminates SunEdison Takeover Deal

Vivint Solar on Monday said it has terminated its merger agreement with SunEdison Inc. after mounting financial woes kept the solar-energy company from meeting obligations of the deal.

Vivent said SunEdison's failure to consummate the merger when required constitutes a willful breach of the agreement, and the rooftop-solar company plans to "seek all legal remedies available to it."

Barclays PLC, Citigroup Inc., Goldman Sachs Group Inc. and UBS Group AG had balked at providing loans they had committed to fund the takeover, according to people familiar with the matter. The banks had told SunEdison its failure to provide them with up-to-date financial statements meant it hadn't fulfilled a condition of the loan agreement, the people said.

SunEdison said in a regulatory filing last week it would delay its 2015 earnings report while its board investigates claims from a former and a current employee challenging the accuracy of the company's financial disclosures.

SunEdison said it has found no wrongdoing. The review is still under way and could require the company to "reassess its liquidity position," SunEdison said.

When the deal was announced in July 2015, it was worth $1.9 billion. SunEdison and Vivint later renegotiated the deal, reducing the cash portion. And Vivint's majority shareholder, Blackstone Group LP, agreed to take stock in lieu of cash and to provide SunEdison with a $250 million credit line.

Shares of SunEdison sank 6.3% premarket to $1.78 while shares of Vivint dropped 6.9% to $4.85.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

March 08, 2016 07:25 ET (12:25 GMT)

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