SunPower files for Chapter 11, to sell Blue Raven Solar to Complete Solaria

SunPower (SPWR) announced it has entered into an asset purchase agreement with Complete Solaria (CSLR) to serve as the Stalking Horse Buyer for the assets associated with SunPower’s Blue Raven Solar business, New Homes business, and non-installing dealer network. Concurrently, the company and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, which will provide other interested parties the opportunity to submit competing bids for the company’s assets. Under the terms of the APA, subject to court approval, Complete Solaria will acquire the assets and assume certain related liabilities for $45M in cash. The company has asked the court for approval to complete the transaction mid to late September. Additionally, SunPower intends to continue a sale process for its remaining assets and effectuate any resulting sale transactions pursuant to Section 363 of the U.S. Bankruptcy Code. SunPower has requested court approval to access the necessary prepetition cash collateral to fund business operations and administrative expenses during the Chapter 11 cases. To support its operations during the court-supervised process, the company is filing a variety of customary motions seeking, among other things, authorization to meet its obligations to its employees. The company expects to receive court approval for these requests. Following an expeditious sale process, the company plans to liquidate any remaining assets and undergo an orderly and efficient winddown of its operations.