SunPower makes Chapter 11 filing, agrees USD-45m asset sale

After struggling to cut costs for several months, US residential solar company SunPower (NASDAQ:SPWR) has filed for Chapter 11 bankruptcy protection and agreed to sell several of its businesses in a USD-45-million (EUR 41.1m) cash deal.

SunPower said on Monday that the voluntary Chapter 11 petitions were filed in the US Bankruptcy Court for the District of Delaware. As part of the plan, it has also entered into a “stalking horse” agreement with California-based end-to-end solar solutions provider Complete Solaria Inc (NASDAQ:CSLR) that calls for the latter to buy its Blue Raven Solar business, New Homes business, and non-installing dealer network. This arrangement will also see Complete Solaria assume certain liabilities related to the businesses, provided that the transaction receives court approval.

"In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership,” said Tom Werner, executive chairman at SunPower.

SunPower has requested court approval to complete the transaction mid to late September.

In the meantime, SunPower intends to pursue a sale of its remaining assets. Once this process is completed, the California-based company’s plan is to liquidate any remaining assets and undergo an efficient wind-down of its operations. “We are working to secure long-term solutions for the remaining areas of our business, while maintaining our focus on supporting our valued employees, customers, dealers, builders, and partners,” Werner added.

In April, SunPower announced plans to cut costs and simplify its business model through the lay-off of about 1,000 employees and the closure of certain direct sales divisions. Last month, the company suspended various services within its offering, including new lease and power purchase agreement (PPA) sales.

(USD 1.0 = EUR 0.913)

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