Quick overview

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Orsted A/S stock plunged up to 19 percent to a record low after the Trump administration halted the construction of an almost completed offshore wind farm, disrupting a government-backed share sale that was scheduled to cost 60 billion kroner ($9.4 billion)

The management of the Danish wind company is meeting to reassure investors that a developing crisis is under control and that the planned rights issue will proceed. Orsted is receiving advice from banks like JPMorgan Chase and Co. and has not yet formally launched or priced the offering. Morgan Stanley as well. Orsted’s stock has dropped nearly 50% so far this year, depleting the company’s worth by almost $8 billion.

These developments represent the recent move by the Trump administration to stop offshore wind farm development, an energy source that the president finds objectionable. These have included rescinding project-supporting tax credits and halting new leases on land and permits for offshore wind farms. The Revolution Wind project, which Jefferies estimates will cost $4 billion to build, is the subject of Friday’s stop-work order off the coast of Rhode Island

It is the most recent in a series of negative developments for Orsted, which resulted in the reduction of its credit rating to the lowest investment grade. Investors are interested in whether the company can reach a deal to satisfy the government and how long that might take, or if it will have to abandon the project.

The lack of clarity may hurt investor interest in the rights issue or necessitate further government investment in the business.