image credit:sunpower cooperation
SunPower, a solar company, said it had filed for Chapter 11 bankruptcy in the US and decided to sell $45 million worth of business to Complete Solaria.
Before the market started on Tuesday, SunPower’s stock fell about 45% to 44 cents. The business had filed for bankruptcy in Delaware late Monday night, saying that its bills and assets were worth between $1 billion and $10 billion.
“This is really the end of SunPower,” said Pavel Molchanov, an expert at Raymond James. To be exact, this is Chapter 11 (restructuring) bankruptcy instead of Chapter 7 (liquidation).
Molchanov believes that “SunPower, which was founded all the way back in 1985, will cease to exist” once the assets are sold.
SunPower has had a rough few quarters since its CEO quit in February and the company was asked to meet with a U.S. stock regulator that same month to talk about how it does its accounting.
When the company said it was stopping some things last month, like shipping new goods and letting people lease and buy things on its platform, the problem got worse.
Complete Solaria in California made a “stalking horse” deal with SunPower to buy its Blue Raven Solar and New Homes businesses, as well as its network of dealers who don’t install solar panels. SunPower said it plans to keep selling its other assets.
The stalking horse bid is the lowest offer that can be accepted. Anyone who wants to buy an asset or business must beat it.
Sunshine Power bought Blue Raven for $165 million in 2021.
Comment Template