Latest news with #SunnovaEnergyInternationalInc.
Epoch Times
9 hours ago
- Business
- Epoch Times
Major US Solar Company Files for Bankruptcy Protection
Sunnova Energy International Inc., one of the biggest solar companies in the United States, filed for Chapter 11 relief to facilitate a sale process for some of the business's assets and operations, according to a June 9 Founded in 2012, Houston-based
The Star
a day ago
- Business
- The Star
Sunnova files for bankruptcy on residential solar woes
The logo of Sunnova Energy International Inc. is displayed on screens during the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 25, 2019. REUTERS/Brendan McDermid/File Photo Sunnova Energy said on Sunday it had filed for Chapter 11 bankruptcy protection in the United States, as the residential solar panel installer buckled under the pressure of mounting debt and weakening demand. Sunnova is the second residential solar company to file for bankruptcy this month, reflecting the challenges faced by the industry as it struggles to cope with higher interest rates, an incentive cut in top market California and fears of subsidy rollbacks. Last week, privately held Solar Mosaic filed for bankruptcy protection, while industry pioneer SunPower collapsed a year back. On Monday, Sunnova said it had entered into agreements with Atlas SP Partners and Lennar Homes under which it would sell certain assets to each company for a value of $15 million and $16 million respectively, pending court approval. The company will continue its regular operations throughout the sale process. Sunnova filed for protection in the Bankruptcy Court for the Southern District of Texas after warning in March that it might not be able to continue as a going concern. The company listed its estimated assets and liabilities in the range of $10 billion to $50 billion and had a total debt of $10.67 billion as of December 31, according to a court filing. Sunnova said last week it would lay off about 55% of its workforce, or 718 employees, in a bid to cut spending. Earlier this month, its unit, Sunnova TEP Developer, had also filed for Chapter 11 bankruptcy protection. President Donald Trump's administration, which is pushing to maximise oil and gas production, cancelled a partial loan guarantee of $2.92 billion last month that was awarded to Sunnova by the Biden administration. Companies that put solar panels on U.S. homes said last month that a Republican budget bill that has advanced in Congress could deal a massive blow to the industry by eliminating a generous subsidy for homeowners that had buttressed the industry's growth. "Depending on what happens with the tax bill in Congress, the conditions in this market may become even worse in 2026, because Congress is considering ending the tax credit for residential solar," Raymond James analyst Pavel Molchanov said. - Reuters
Mint
a day ago
- Business
- Mint
Sunnova Faces Dealers Push-Back After ‘Whac-A-Mole' Bankruptcy
(Bloomberg) -- Residential solar company Sunnova Energy International Inc.'s bankruptcy is facing push-back from dealers as it struggles to raise cash to keep operating and fund its Chapter 11 filing. An ad-hoc group of dealers filed an objection on Monday in which it said a proposed asset sale of solar systems would strip away their claims and that the company has not had any discussions with traders about the terms of the sale, according to court documents. That $15 million sale, according to Sunnova, would fund the bankruptcy case. Sunnova, one of the largest US rooftop solar companies, doesn't have a debtor-in-possession financing secured yet and only has $13.5 million cash on hand. It owes nearly $9 billion in funded debt. The company is working on asset sales in 'bite-size pieces' to press ahead its bankruptcy plan, according to company counsel Brian Schartz at the first-day hearing on Monday in Texas. 'We just ran out of time. We are playing a Whac-a-Mole,' Schartz said. Some companies enter bankruptcy with a restructuring support agreement and a clear path forward, but 'this is not that type of case,' he said. The company is negotiating a potential debtor-in-possession financing with a group of investors represented by Paul, Weiss, Rifkind, Wharton & Garrison, Schartz said. James Muenker, a lawyer representing large dealer Power Solar LLC, raised questions during the hearing over funds related to a Puerto Rico program. The dealer's lawyer asked whether the company is in possession of funding and grants from the US Department of Energy related to the program, and whether the funds will be used to pay for vendors' claims. 'There's no debt financing currently, and we don't know where the case exactly is going to go,' Muenker said. Last month, Sunnova said it had struck an agreement with the Energy Department to reduce a $3 billion partial loan guarantee to $372 million. The case is Sunnova Energy International Inc., case number 25-90160, in US Bankruptcy Court of Southern District of Texas. --With assistance from Mark Chediak. More stories like this are available on
