* Company to cut costs, streamline operations
* Says terminated agreement to buy Latin American Power
* Cuts 2016 production forecast to 3.3-3.7 GW from 4.2-4.5
* Shares rise as much as 16 pct (Adds details, analyst comment)
Oct 7 (Reuters) - Solar company SunEdison Inc said on Wednesday it was on track to be cash positive throughout next year, assuaging investor concerns about its liquidity and "yieldco" model.
SunEdison's shares rose as much as 16 percent to $10.07.
The company, which said two days ago that it would cut 15 percent of its workforce, has reported negative cash flow from operating activities for the past four years, according to Thomson Reuters data.
SunEdison also said on Wednesday that it had terminated an agreement to buy renewable energy company Latin American Power.
The Wall Street Journal first reported late on Tuesday that the company would end a $700 million agreement to buy Latin American Power, an owner of wind and hydropower projects in Chile and Peru.
"SunEdison has got to a point where I don't expect to see an acquisition from them over the next several quarters," said S&P Capital IQ analyst Angelo Zino.
Maryland Heights, Missouri-based SunEdison, which has spent more than $6 billion on acquisitions in less than a year, has been under pressure since mid-July after buying Vivint Solar Inc in a deal valued at $2.2 billion.
Also, the company's "yieldco" model has been hit by falling oil prices as well as a flood of IPOs.
SunEdison last July became the first solar company to spin off some of its power plants into yieldco, which earns money through long-term contracts with utilities.
Terraform Global Inc, one of the company's yieldcos, had a weaker-than-expected market debut on July 31, triggering a fall in SunEdison's shares. Up to Tuesday's close, the stock had fallen nearly 63 percent since then.
On Wednesday, SunEdison also cut its 2016 production forecast to 3.3-3.7 gigawatts from 4.2-4.5 GW.
SunEdison said it was doing more third-party sales, compared with its base plan of 5-10 percent.
This will help SunEdison enhance near-term cash flow generation, said Zino.
SunEdison said it expected about 45 percent of its total volume to be sold to third parties in 2016.
The company's shares were up 8.4 percent at $9.42 in afternoon trading on the New York Stock Exchange. (Reporting by Amrutha Gayathri and Shubhankar Chakravorty in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)