Sunnova Files for Chapter 11, Eyes Sale to Secure Future
HOUSTON – Sunnova Energy International Inc. (NYSE: NOVA) announced today it has initiated voluntary Chapter 11 proceedings on June 8, 2025, along with certain subsidiaries, in the U.S. Bankruptcy Court for the Southern District of Texas. The move is designed to facilitate a strategic sale of assets and business operations, aiming to maximize value for all stakeholders. The company intends to maintain its operations throughout the sale process.
Sunnova plans a court-supervised sale, allowing interested parties to submit bids. This process is expected to take approximately 45 days.
“Today’s actions are a crucial step towards securing a value-maximizing outcome for Sunnova’s stakeholders,” said Paul Mathews, CEO. “Our top priority is to maintain seamless service for our customers during this process. We are working towards a long-term solution for our business under new ownership. I’m immensely grateful to the Sunnova team for their hard work and commitment. We have built an innovative power provider, and I have deep faith in the future of both our industry and residential solar and storage.”
Customers can expect continued service, with the Company directly communicating any significant changes.
**Strategic Agreements with ATLAS SP Partners and Lennar Homes, LLC**
Sunnova has entered into an asset purchase agreement (the “Asset Purchase Agreement”) involving certain solar systems, related rights, and customer agreements, to be sold to TEPH Subsidiary. The purchase price of $15.0 million will be financed through proceeds borrowed from TEP Holdings’ existing warehouse credit facility. In addition, Sunnova, ATLAS, and certain of its subsidiaries have entered into a settlement agreement. These agreements will provide Sunnova with additional liquidity to help cover operational expenses and meet employee obligations as the Company proceeds with Chapter 11.
Concurrent with this, another Asset Purchase Agreement (“Solar Power System Purchase Agreement”) has been entered into with Lennar Homes, LLC. Upon Court approval, Lennar will acquire select assets associated with Sunnova’s New Homes business division for a total of approximately $16.0 million.
**Tax Equity Partnerships and Asset Backed Securities Unaffected**
The Chapter 11 filing and associated transactions will not have a material impact on Sunnova’s established tax equity partnership affiliates or asset-backed securities, as these investment structures are designed to be bankruptcy remote. The Company will prioritize providing service and performance for the benefit of its asset-backed security holders and tax equity partners.
**Operations During Chapter 11**
Sunnova intends to utilize funds from the Asset Purchase Agreement and Solar Power System Purchase Agreement, pending court approval, as well as its available cash, to support primary business operations during the initial stage of the Chapter 11 sale process. The Company is also working to finalize initiatives aimed at securing extra capital.
The Court has granted interim approval for several “First Day Motions” to ensure an orderly transition, including the continued payment of employee wages and benefits, the maintenance of customer programs and services, and the fulfillment of post-petition obligations to its commercial partners. This approval allows the Company to continue certain business operations throughout the Chapter 11 process.
The Company has also gained interim relief to honor loan, lease, and service agreements, power purchase agreements, managed solar renewable energy certificates, demand response agreements, and production guarantees during the Chapter 11 proceedings.
This filing follows the voluntary chapter 11 petition filed by TEP Developer, a subsidiary of the Company, on June 1, 2025. Sunnova has sought relief to jointly administer these chapter 11 cases.
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