* Cash forecasts were overly optimistic, panel finds
* SunEdison lacked controls in managing cash flows
* Shares up 43 percent at 53 cents premarket
(Adds details, background, analyst's comment)
April 14 (Reuters) - SunEdison Inc SUNE.N said an
independent audit committee had identified several issues with
the company's cash-flow management but found no "material
misstatements" in its historical financial reports.
SunEdison, which has more than $12 billion in debt, is
widely expected to file for bankruptcy this week.
Shares of the company, which has delayed filing its 2015
annual report twice, rose 43 percent to 53 cents in premarket
trading on Thursday.
The committee said in a regulatory filing that management's
assumptions about the company's cash forecasts were overly
optimistic and it did not respond appropriately when forecasts
were not met.
"These accounting issues are a side issue ... SunEdison's
fundamental problem is the excessive leverage, which is why
there is a high likelihood of bankruptcy within weeks," Raymond
James analyst Pavel Molchanov said.
SunEdison was until recently the fastest growing renewable
energy developer in the United States but now faces a severe
cash crunch.
Its shares have tumbled about 99 percent over the past 12
months. The company is under regulatory scrutiny over a failed
deal to buy solar panel installer Vivint Solar Inc VSLR.N .
The panel said it wants SunEdison to implement improved cash
forecasting systems, flag changes in outlook directly to the
board and strengthen its internal accounting controls.
The recent hiring of Ilan Daskal as chief financial officer
may help resolve these accounting issues, the panel said.
The committee said it had not found substantial evidence of
fraud or willful misconduct of management. (http://1.usa.gov/23xjMGq)
However, the panel identified wrongdoing by a former
non-executive employee in connection with talks over the
termination of SunEdison's deal to buy Vivint.
The panel said the employee, whose name was not disclosed,
had been subsequently fired by SunEdison.