Sunnova, a Houston-based photo voltaic vitality firm, has filed for Chapter 11 chapter days after shedding greater than half of the corporate’s workforce.
A subsidiary of the vitality firm filed petitions in search of reduction beneath Chapter 11 of america’ chapter code on June 1. Sunnova Vitality Worldwide Inc. and Sunnova Intermediate Holdings, LLC filed for chapter within the Chapter Court docket for the Southern District of Texas on Sunday.
The filings come after Sunnova, scuffling with monetary woes, filed a discover with the Securities and Alternate Fee final month that the corporate would scale back its workforce by 55% — roughly 718 staff — so as to scale back the corporate’s working bills and “in an effort to protect worth for stakeholders.”
The Trump administration final month canceled a virtually $3 billion authorities mortgage assure to the photo voltaic set up firm, Reuters reported.
Firm officers wrote in chapter courtroom filings Sunday that submitting for Chapter 11 chapter is in the most effective curiosity of the corporate, its stakeholders and collectors. The corporate’s belongings are listed between $10 billion and $50 billion. The corporate’s complete debt is simply over $10 billion, in response to the filings.
In a letter addressed to the Texas Workforce Fee on Might 30, Latasha Bernard, a Sunnova vp, wrote that for a number of months, the corporate had labored to safe capital, however was unable to safe what was wanted to keep away from vital layoffs.
“In parallel with these negotiations, sure of the Sunnova’s tax fairness traders unexpectedly shut off entry to additional advances thereby materially decreasing Sunnova’s accessible liquidity and in flip stopping the continued origination of latest photo voltaic methods and the completion of current photo voltaic methods,” Bernard wrote.
The monetary obstacles had been unexpected, in response to the letter, and “arose in opposition to a sudden, sudden and more and more difficult macro-economic local weather that roiled your entire renewables trade.” In flip, Sunnova, which made monetary milestones within the renewable vitality trade in its heyday, struggled to compete within the vitality capital of the world.
The intensive layoffs took impact on Might 30.
