Privately-held Sungevity and three affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-10561. The Company, which offers solar energy solutions, is represented by M. Blake Cleary of Young Conaway Stargatt & Taylor.
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. To provide capital for Sungevity’s operations and to fund the auction and sale process, the group of investors has committed to provide the company with up to $20 million in financing.
“The Board and its advisors reviewed a range of options and ultimately decided that a court-supervised sale represents the best path forward for our customers, suppliers, employees and business partners,” notes Andrew Birch, Sungevity’s C.E.O. “Sungevity has long been a pioneer in the field of residential solar installation, and we believe that this represents a step forward for the company.” Sungevity’s Chapter 11 petition indicates assets greater than $100 million.
Read more energy bankruptcy news.