A recent decision by a US bankruptcy court has approved SunPower’s stalking horse bid for its assets, according to Reuters. This approval follows SunPower’s Chapter 11 bankruptcy filing, during which the company entered into an asset purchase agreement (APA) with Complete Solaria, a residential solar company. The stalking horse bid involves a pre-approved buyer setting an initial bid to establish a baseline for other potential bidders.
To facilitate the sale process, a deadline for additional bids has been set for September 10, 2024. If other offers are received, an auction will be held on September 16. The court has also set a deadline of September 20 for any objections to the sale. These dates are critical for ensuring a fair and competitive bidding process.
SunPower’s Stalking Horse Bid Approved Amid Bankruptcy, Auction Set for September
Maxeon, a solar manufacturer that spun off from SunPower in 2020, has objected to the stalking horse bid rules. Maxeon claims ownership of SunPower’s trademarks outside the US and argues that this should affect the bidding process. Despite this objection, the court has decided to proceed with the stalking horse bid, overruling Maxeon’s concerns.
The proposed sale package from SunPower includes assets valued at $45 million. This package comprises the Blue Raven Solar business, the New Homes business, and SunPower’s non-installing Dealer network. The company plans to use Section 363 of the US Bankruptcy Code to manage the sale of these assets.
SunPower’s Chapter 11 filing in early August followed an industry report from Roth Capital, which revealed that the company had suspended several operations, including new shipments and financing options. This suspension highlighted the company’s financial difficulties and accelerated the need for asset liquidation.
