SunPower has also signed an Asset Purchase Agreement (APA) with residential solar company Complete Solaria. Image: SunPower.

SunPower, a US residential solar energy supplier, has submitted a voluntary relief application under Chapter 11 of the US Bankruptcy Code.

At the same time, the company signed an Asset Purchase Agreement (APA) with Complete Solaria, a residential solar company formed by the merger of Solaria Corporation and Complete Solar, as a "substitute buyer" for SunPower's Blue Raven Solar business, New Homes business, and non installation dealer network related assets. This type of buyer is nominated by the company applying for bankruptcy and is responsible for conducting preliminary bidding on its assets, setting a benchmark for bidding by other potential buyers.

Approved by the court, these assets will be sold for $45 million in cash in mid to late September. SunPower plans to continue selling its remaining assets and complete all resulting sales transactions in accordance with Section 363 of the US Bankruptcy Code.

Less than a month ago, investment bank Roth Capital released a letter from SunPower (obtained from industry insiders) stating that the company has ceased multiple businesses, including new shipments and financing options.

Tom Werner, Executive Chairman of SunPower, said, "Given the challenges SunPower faces, the proposed transaction provides an important opportunity for a key part of our business to continue our legacy under new ownership. We are working hard to find long-term solutions for the remaining areas of our business, while continuing to focus on supporting our valuable employees, customers, distributors, builders, and partners

Challenges faced by SunPower before applying for Chapter 11 bankruptcy protection
Since last year, this residential solar energy supplier has been working hard to maintain operations until it violated a credit agreement in December of last year. At the time, SunPower stated that it was unable to borrow from the remaining $53.7 million revolving commitment due to filing for bankruptcy, but it had obtained a temporary waiver valid until January 19, 2024.

However, the company has previously been sued for alleged inaccurate reporting of revenue, cost, and inventory indicators. As a result, SunPower reiterated its previously released financial statements for the fiscal year 2022 and the first two quarters of 2023. At the end of fiscal year 2023, the company incurred a net loss of $247 million.