Employees set up photo voltaic panels throughout a SunPower set up on a house in Napa, California, on July 17, 2023.
David Paul Morris | Bloomberg | Getty Photographs
The rooftop photo voltaic installer SunPower has filed for chapter, after struggling for months within the face of excessive rates of interest and allegations of misconduct in its reporting practices.
SunPower inventory dropped practically 44% Tuesday to shut at 45 cents per share. Its shares have collapsed greater than 90% this yr.
SunPower listed belongings and liabilities between $1 billion and $10 billion in its Chapter 11 safety submitting late Monday in U.S. Chapter Courtroom for the District of Delaware. Its largest stakeholder is TotalEnergies, in keeping with FactSet.
SunPower is promoting its Blue Raven Photo voltaic and new properties companies in addition to its non-installing supplier community to Full Solaria for $45 million topic to court docket approval, in keeping with a press release late Monday. The corporate has requested the court docket to approve the sale by mid-September.
SunPower plans to promote its remaining belongings by way of the chapter course of, the corporate mentioned. Its inventory collapsed under $1 in July after the corporate halted new leases, product shipments and installations.
The residential photo voltaic sector has been walloped as excessive rates of interest have depressed demand, leaving corporations with an excessive amount of stock readily available. However SunPower’s inventory has additionally been underneath strain attributable to allegations of misconduct in its reporting practices.
The U.S. Securities and Change Fee subpoenaed SunPower in February for paperwork over income recognition practices in quarterly experiences from 2023, in keeping with a submitting.
SunPower’s impartial accountant Ernst & Younger resigned in June as a result of it didn’t need to be related to the corporate’s monetary statements, citing allegations that senior members of administration have been concerned in misconduct associated to monetary statements.
In December, SunPower breached a credit score settlement and warned that “substantial doubt” existed about its means to maintain working.
