US solar installer Sunworks makes bankruptcy filing

US solar installer Sunworks Inc (NASDAQ:SUNW), along with three of its subsidiaries, has ceased operations and has filed for bankruptcy which will result in asset liquidation.

The Chapter 7 filing follows a thorough review of strategic alternatives, the Provo, Utah-based firm noted in a document recently submitted to the Securities and Exchange Commission (SEC).

A trustee will now be appointed by the Bankruptcy Court to assume control over the assets and liabilities of the company, effectively eliminating the authority and powers of its board of directors and its executives. All assets will be liquidated, while the claims will be paid in accordance with US law, the document said.

The bankruptcy filing followed the resignations of Sunworks’ CEO Mark Trout and the members of the company’s board at the beginning of February. The company currently has no officers, consultants or employees.

In its most recent financial report published in November, Sunworks disclosed a 29.5% year-on-year drop in revenue to USD 28.7 million (EUR 26.6m) for the three months ended September 30, 2023, including a 44.5% decline to USD 20.3 million in the residential solar segment.

In the reported period, the company’s net loss soared to USD 36.4 million from about USD 5.4 million in July-September 2022. The adjusted loss before interest, taxes, depreciation and amortisation also expanded to USD 8.53 million from USD 3.74 million.

The Chapter 7 filing was disclosed on February 6. Shares in the company skyrocketed 87.87% to USD 0.102 at Friday’s close.

Sunworks has been offering solar and battery storage solutions for over a decade. The company has a total installed capacity of more than 220 MW, according to its website.

More than 100 solar contractors went bankrupt last year in the US, according to commercial solar warranter SolarInsure, with the tendency explained by various challenges, such as higher interest rates, tighter financing and adverse policy shifts.

(USD 1 = EUR 0.928)

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