Participants in SunEdison Inc.’s $155 million retirement plan suffered heavy losses on their investments in company stock last year in the months before the renewable power plant developer landed in bankruptcy, according to Reuters.
On Wednesday, “the retirement savings plan disclosed $10.3 million in losses from investments in 2015,” the news service reports. “Nearly all of that came from investments in SunEdison stock, according to the retirement plan’s annual report.”
SunEdison filed for bankruptcy in April after an “aggressive growth plan” proved unsuccessful.
“At the start of 2015, about $17 million, or 13 percent of the retirement plan’s $133.1 million in total investments, was held in SunEdison stock, according to the annual report.”
SunEdison shares plunged 75 percent in 2015 as the company signaled troubles from its heavy debt load.
In March of this year, SunEdison issued a blackout notice that prevented retirement plan participants from investing their contributions in the SunEdison stock fund. The notice also prevented them from transferring any amount from other investment options, such as mutual funds, into company stock, according to Reuters, citing the company’ annual report.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
