According to a filing from subsidiary TerraForm Global, the group faces a "substantial risk" of bankruptcy, it was reported, while the Wall Street Journal reported that it faces an investigation from the Securities and Exchange Commission over the possibility it may have exaggerated its cash status.
Just weeks ago, the group delayed its 2015 earnings report due to accusations over the accuracy of the company’s financial statements.
It also dropped a proposed $2bn takeover of Vivint Solar Inc (NYSE:VSLR) and reports suggested that funding for the deal had also failed to materialise from its banks.
That plan was heavily criticised by hedge fund group Appaloosa Management, a large TerraForm shareholder.
In November last year, SunEdison reported it had US$1.4 billion in cash and “sufficient liquidity” to withstand a downturn in its stock price and cover coming obligations, including a milestone payment related to its 2015 acquisition of First Wind LLC.
Shares in SunEdison dropped over 40% to US$0.75.