US bankruptcy court approves stalking horse bid for SunPower assets
5:51 pm Thursday, August 29th, 2024
(Reuters) – A U.S. bankruptcy court judge approved on Thursday a $45 million bid for the assets of failed residential solar company SunPower by rival Complete Solaria.
WHY IT’S IMPORTANT
Approval of the “stalking horse” bid means California-based Complete Solaria will snap up SunPower’s major assets if no higher offers emerge in the coming weeks.
Assets included are the company’s business for solar on new homes, a sales business for non-installing dealers, and the Blue Raven division it acquired in 2021 for $165 million.
SunPower was a pioneer of the U.S. residential solar market but it collapsed earlier this month following a subpoena from the U.S. Securities and Exchange Commission about its accounting practices and the departure of its CEO.
The U.S. residential solar industry has also been struggling broadly with higher interest rates and a reduction in incentives in the top market, California.
WHAT’S NEXT
Judge Craig Goldblatt of Delaware bankruptcy court set a Sept. 10 deadline for additional bids, and will hold an auction on Sept. 16 if necessary, court documents showed.
The court also set a sale objection deadline of Sept. 20.
Maxeon, the Singapore-based solar panel maker spun off from SunPower in 2020, objected to the stalking horse bidding rules, saying it owns the rights to SunPower trademarks outside of the United States. The objection was overruled.
A Maxeon spokesperson did not immediately respond to a request for comment.
(Reporting by Nichola Groom; Editing by Richard Chang)
