Solar-energy company SunEdison Inc. on Thursday said it filed for chapter 11 bankruptcy protection, a dramatic move for a company whose market value stood at nearly $10 billion in July.

SunEdison said its publicly traded so-called yieldcos, TerraForm Power Inc. and TerraForm Global Inc., aren't part of the filing.

"Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues," said Chief Executive Ahmad Chatila. "The court process will allow us to right-size our balance sheet and reduce our debt."

He said the process will also help the company transform "into a more streamlined and efficient operator, shedding noncore assets as well as taking other steps to help us get the most value out of our technological and intellectual property."

The company said it has secured commitments for new capital up to $300 million in debtor-in-possession financing from a consortium of first and second lien lenders.

Bankruptcy has been a near-certainty for SunEdison for some time. The company borrowed heavily to buy up wind and solar developers, accumulating a pile of debt that worried investors. Disappointing earnings didn't ease their fears about the pace of SunEdison's growth, and an accounting move last year that reclassified more than $700 million worth of debt heightened anxieties.

As its woes mounted, SunEdison couldn't close deals, including the $2.2 billion takeover of Vivint Solar Inc., and the $700 million buyout of Latin America Power.

Chapter 11 may be the first clear view investors get into the company's exact financial shape. SunEdison postponed filing its annual reports twice, then missed the deadline, triggering big trouble with lenders. SunEdison's debts top $10 billion.

SunEdison, whose stock has plunged in recent months, would rank among the largest financial collapses in recent years. The company, based about 20 miles outside St. Louis, used a combination of financial engineering and cheap debt to grow to be one of the country's biggest developers of renewable-power plants.

Write to Anne Steele at Anne.Steele@wsj.com and Peg Brickley at peg.brickley@wsj.com

(END) Dow Jones Newswires

April 21, 2016 10:25 ET (14:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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