SunPower shares slide after raising going concern doubts

(Reuters) – SunPower said on Monday it had substantial doubts on its ability to continue as a going concern, sending shares of the solar company down 25% in premarket trading on Monday.

The company also said it breached the terms of a credit agreement due to a delay in the filing of its quarterly results.

Earlier in October, SunPower had revealed that it would restate its financial statements for last financial year as well as first and second quarters due to issues with valuation of some microinverter components at certain third-party locations.

The lender may demand immediate payment of $65.3 million borrowings outstanding, SunPower said in a filing.

“Substantial doubt exists about our ability to continue as a going concern and if we are unable to continue our business, our common stock might have little or no value,” the company said.

(Reporting by Sourasis Bose in Bengaluru; Editing by Anil D’Silva)