Leading Solar Panel Manufacturer Declares Bankruptcy And Plans To Liquidate Assets For $45 Million.

SunPower, a leading solar panel company, has officially filed for Chapter 11 bankruptcy in the United States. To mitigate its financial struggles, the company has entered into a stalking horse agreement with Complete Solaria, which entails selling a portion of its business.

According to the filing, SunPower’s current debt stands at $1.1 billion, while its assets amount to $1.2 billion as of the end of 2023. Its largest creditor, Zyxel Communications Inc., is owed up to $15.4 million, and tech firm Enphase Energy is owed $4 million. Additionally, SunPower has outstanding debts of $3 million each to Google and Leonard Roofing, as stated in the filing.

Explaining the need for the bankruptcy filing, SunPower highlighted that the market’s recovery has been slower than anticipated. Layoffs and other financial controls were deemed necessary to safeguard the company’s future.

Further exacerbating SunPower’s struggles, soaring interest rates have increased borrowing costs, dampening both demand and investment in solar energy.

A stalking horse bid, typically used as a starting or minimally accepted offer before an auction, has been proposed. This means that other potential bidders will need to surpass that bid if they wish to acquire the company or its assets.

The success of the deal is subject to court approval, and SunPower has requested that the transaction receive court approval by mid to late September. Additionally, the company intends to sell its remaining assets through the bankruptcy process.

Considering the challenges faced by SunPower, the proposed transaction presents a significant opportunity for key parts of the business to continue under new ownership. Werner expressed the company’s commitment to finding long-term solutions for its remaining areas, while prioritizing the support for employees, customers, dealers, builders, and partners.

Following the bankruptcy announcement, SunPower’s stock plummeted by nearly 44 percent on Tuesday. The company’s shares have already experienced a 94 percent decline throughout this year.

The Epoch Times has reached out to a spokesperson for SunPower for further comments on the matter.