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HOUSTON - Sunnova Energy International Inc. announced Thursday that the U.S. Bankruptcy Court for the Southern District of Texas has approved the sale of substantially all its assets and business operations to a group of its debtor-in-possession lenders and entities controlled by GoodFinch Management, LLC. According to InvestingPro data, the company has been operating under significant financial strain, with a total debt burden of $8.49 billion and concerning cash burn rates that contributed to its current situation.
The transaction, expected to close in August 2025, was determined to be the highest or best bid following a court-supervised sale process. The deal includes Sunnova’s residential solar servicing platform and its solar generation and storage portfolio in exchange for a credit bid of the debtor-in-possession financing, $25 million in cash, and certain cure costs. Despite generating revenue of $839.92 million in the last twelve months with a gross profit margin of 33.35%, the company’s financial health score stands at a weak 1.67 out of 5, as reported by InvestingPro, which offers comprehensive analysis of over 1,400 US stocks.
"This transaction represents a significant step forward that secures the future of Sunnova’s operations under new ownership," said Paul Mathews, Chief Executive Officer of Sunnova, according to the company’s press release. For detailed insights into Sunnova’s financial health and future prospects, investors can access over 20 additional ProTips and comprehensive financial metrics through InvestingPro’s exclusive research reports.
Under the agreement, SunStrong Management, LLC will take over servicing of solar and storage systems. Sunnova expects full continuity of customer service and system management for substantially all in-service customers during the transition to new ownership.
The company continues to monitor and manage in-service solar and storage systems in the ordinary course of business while working to complete the sale transaction.
This sale does not impact Sunnova’s previously announced asset purchase agreement and settlement agreement with ATLAS SP Partners, which continues to negotiate with certain dealers and installers to complete in-process solar systems.
Kirkland & Ellis LLP and Bracewell LLP are serving as legal counsel to Sunnova, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP are representing the ad hoc group of lenders.
In other recent news, Sunnova Energy International Inc. has filed for Chapter 11 bankruptcy protection, a move that has significant implications for the company’s financial obligations. This filing, made in the U.S. Bankruptcy Court for the Southern District of Texas, automatically triggered defaults and accelerated obligations under several debt instruments. The company aims to continue operations as "debtors in possession" while seeking to sell certain assets under court supervision. Following this development, Moody’s Ratings downgraded Sunnova’s probability of default rating to D-PD from Ca-PD/LD, indicating heightened financial distress. The company’s corporate family rating and senior unsecured rating remain at Ca, reflecting ongoing challenges. Additionally, Sunnova has announced a substantial workforce reduction, laying off approximately 55% of its employees to cut operating expenses. In a related move, Sunnova extended its forbearance agreement with holders of its senior notes to June 2, as it continues to navigate financial difficulties. The company had previously deferred a $23.5 million interest payment, which could have led to an event of default.
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