Lumio, a residential PV installer within the United States, has filed for chapter.
From pv journal USA
Residential photo voltaic installer Lumio stated it has filed for Chapter 11 chapter, including to a rising variety of U.S. residential photo voltaic firms going bankrupt amid excessive rates of interest and regulatory chaos in California.
However, in contrast to photo voltaic big SunPower, which closed enterprise for goodthe Lumio will proceed to function. The firm stated it expects to finish the sale course of in lower than two months. During the sale course of, Lumio’s operations will proceed as typical with out interruption.
Lumio stated it should proceed the pre-petition sale course of by a court-supervised process aimed toward securing the best or greatest bid for its property to maximise the worth of the stakeholders. The sale will present certainty for workers, prospects, and commerce collectors, whose claims shall be thought of, the corporate added.
Before submitting for Chapter 11, Lumio signed a stalking horse asset buy settlement with White Oak Global Advisors, its major senior secured lender. White Oak plans to accumulate most of Lumio’s property by a $100 million credit score bid and, if profitable, provide important fairness possession to the corporate’s workers.
“Today’s announcement marks an necessary step ahead for Lumio and a continuation of our deliberate efforts to place the enterprise with the strategic, operational, and monetary basis to maneuver ahead within the photo voltaic trade as it should enter the restoration section,” stated Andrew Walton, chief govt officer of Lumio. “With the improved monetary power and help of recent possession following the completion of our sale course of, we’re nicely positioned to reap the benefits of progress alternatives and higher serve our prospects at each flip.” step of their transition to photo voltaic.”
Lumio signed an settlement with White Oak for $8 million in debt-to-owner financing. Pending court docket approval, it should fund operations throughout the sale course of.
Morris, Nichols, Arsht & Tunnell LLP offered authorized counsel, Houlihan Lokey acted as funding banker, and C Street Advisory Group dealt with strategic communications.
White Oak, a worldwide different asset supervisor, manages $9.7 billion in property.
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