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Lumio, a residential PV installer in the United States, has filed for bankruptcy. It filed Chapter 11 bankruptcy in order to close the sale of its business.
Residential solar installer Lumio said it has filed for Chapter 11 bankruptcy, adding to the growing number of US residential solar companies going bankrupt amid high interest rates and regulatory turmoil in California.
However, unlike solar giant SunPower, which closed business for good, Lumio will continue to operate. The company said it expects to complete the sale process in less than two months. During the sale process, Lumio’s operations will continue as usual without interruption.
Lumio said it will continue its pre-petition sale process through a court-supervised procedure aimed at securing the highest or best bid for its assets to maximize value for stakeholders. The sale will provide certainty for employees, customers, and trade creditors, whose claims will be assumed, added the company.
Before filing for Chapter 11, Lumio signed a stalking horse asset purchase agreement with White Oak Global Advisors, its primary senior secured lender. White Oak plans to acquire most of Lumio’s assets through a $100 million credit bid and, if successful, offer significant equity ownership to the company’s employees.
“Today’s announcement marks an important step forward for Lumio and a continuation of our deliberate efforts to position the business with the strategic, operational, and financial foundation to operate at the forefront of the solar industry as it enters its recovery phase,” said Andrew Walton, chief executive officer at Lumio. “With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalize on growth opportunities and better serve our customers through every step of their switch to solar.”
Lumio has signed an agreement with White Oak for $8 million in debtor-in-possession financing. Pending court approval, this will fund operations during the sale process.
Morris, Nichols, Arsht & Tunnell LLP is providing legal counsel, Houlihan Lokey is acting as investment banker, and C Street Advisory Group is handling strategic communications.
White Oak, a global alternative asset manager, oversees $9.7 billion in assets. |
