SunPower Corp. a major player in residential solar technology, announces the sale of several of its strategic assets to Complete Solaria, Inc. The transaction, valued at $45 million, primarily involves SunPower’s Blue Raven Solar business, New Homes division, and non-installer distributor network. At the same time, SunPower and certain of its subsidiaries have filed for protection under Chapter 11 of the U.S. Bankruptcy Code. This procedure allows other interested parties to submit competing bids for these assets.
Details of the sales agreement
The asset sale agreement, subject to Delaware court approval, calls for Complete Solaria to assume certain liabilities associated with the acquired assets.
SunPower expects to finalize this transaction by the end of September.
As part of this restructuring, the company will continue to sell its remaining assets in accordance with Section 363 of the Bankruptcy Code, seeking to maximize value for its creditors and shareholders.
Context and implications for the solar energy market
Tom Werner, executive chairman of SunPower, points out that this transaction will enable Complete Solaria, led by T.J. Rodgers, to further SunPower’s mission of making solar energy more accessible.
“For nearly 40 years, SunPower has been a pioneer in residential solar energy,” says Werner.
“We’re confident Complete Solaria will continue to build on our vision.”
For his part, T.J. Rodgers points to the growing economic benefits of solar power. According to him, the production costs of solar electricity are now lower than those of coal, accelerating the transition to zero-emission energy.
This acquisition should strengthen Complete Solaria’s market position and underpin its commitment to clean, reliable energy.
Chapter 11 procedures and administration
Chapter 11 of the U.S. Bankruptcy Code allows a distressed company to restructure while continuing to operate.
This procedure offers protection from creditors and allows a reorganization plan to be proposed under court supervision.
As part of this process, SunPower has applied to the court for authorization to use cash to finance its operations and cover administrative expenses.
The company has also filed motions to obtain authorization to fulfill its obligations to its employees.
SunPower expects to receive court approval for these applications and to liquidate the remaining assets following a rapid sale.
This restructuring is intended to ensure an orderly transition of its operations while providing support to its employees, customers, distributors, builders and partners.
The aim is to maximize the value of the assets sold and minimize disruption to stakeholders.
Future prospects for SunPower and Complete Solaria
SunPower, by filing for Chapter 11 protection, is seeking to restructure its operations to overcome current financial challenges.
The sale of key assets to Complete Solaria represents a crucial step in this process.
With this acquisition, Complete Solaria strengthens its position in the residential solar energy market and is committed to further developing sustainable energy solutions.
This strategic repositioning comes at a time when the solar energy sector is experiencing rapid growth, driven by falling electricity production costs and increased demand for clean energy solutions.
Through this transaction, both companies aim to make a significant contribution to this market dynamic.
