Residential solar firm Lumio makes Chapter 11 filing, seeks sale

US residential solar firm Lumio announced today that it has filed for Chapter 11 bankruptcy protection to facilitate “a value-maximising sale process” and said it has inked a USD-100-million (EUR 90.4m) stalking horse asset purchase agreement with its major senior secured lender.

The stalking horse deal was signed with an affiliate of White Oak Global Advisors LLC which has committed to buying all of Lumio’s assets for consideration in the form of a credit bid. If selected as the successful bidder, the investment advisor intends to offer significant equity ownership to the company’s employees, a press statement says.

White Oak has also agreed to provide USD 8 million in debtor-in-possession (DIP) financing to support the company’s operations during the Chapter 11 process.

The voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code were made with the Bankruptcy Court for the District of Delaware. The court-supervised process is expected to wrap up in less than two months.

“With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalise on growth opportunities and better serve our customers through every step of their switch to solar. As we complete our sale process, we are committed to continuing to deliver our industry leading solutions and an excellent experience to our customers across the country,” said Lumio’s CEO Andrew Walton.

Lumio is the result of a merger of four regional solar providers -- Atlantic Key Energy, Lift Energy Solar, Smart Energy Today and DECA, with a home technology company, namely Unyte Homes, in December 2020. It has more than 1,000 team members and is active in 16 states, according to its website.

Lumio’s announcement comes less than a month after a similar move from peer SunPower.

(USD 1 = EUR 0.904)

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