Sungevity, Inc. voluntarily files for Chapter 11 protection; Operations to continue uninterrupted

Sungevity hadquarters in Oakland, California
Sungevity hadquarters in Oakland, California

Solar PV company Sungevity, Inc. (Oakland, CA, U.S.) on March 13th, 2017 announced that it has commenced voluntary Chapter 11 proceedings in U.S. Bankruptcy Court for the District of Delaware, in order to facilitate a financial and corporate restructuring to strengthen its balance sheet and recapitalize the company.

During the Chapter 11 proceedings, it is expected that the company's operations will continue uninterrupted.

In connection with the restructuring process, and under Section 363 of the Bankruptcy Code, the company has entered into an asset purchase agreement with a group of investors, led by Northern Pacific Group.

Under the terms of the agreement, Northern Pacific Group will acquire substantially all of the company's assets, including the equity interests in the European operations.

While Sungevity's European operations are part of the transaction, their day-to-day operations will not be impacted as a result of the Chapter 11 proceedings in the U.S., the company notes.

 

Company secures USD 20 million financing to fund day-to-day business

The purchase agreement sets the floor, or minimum acceptable bid, for an auction under the supervision of the court, which is designed to achieve the highest available offer. Sungevity expects to complete its financial restructuring and sale through an expedited process. A final sale approval hearing and closing of the sale is expected to take place by the end of April.

To provide capital for the company's operations and to fund the auction and sale process, the group of investors has committed to provide the company with up to USD 20 million in financing.

Subject to interim court approval, the financing will be immediately available to the company, to be used to fund the company's day-to-day operations, and pay any expenses related to the Chapter 11 proceedings.

"The agreement we have reached with the team led by Northern Pacific Group and its co-investors is a testament to their confidence in the future of Sungevity's business,” comments William Nettles, Sungevity's newly appointed Chief Administration Officer.

“The actions we have announced today will allow Sungevity to emerge as a stronger and more competitive company.

 

 

2017-03-14 | Courtesy: Sungevity | solarserver.com © Heindl Server GmbH

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