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Sunnova Energy International Inc . (NYSE:NOVA), along with its subsidiaries Sunnova Energy Corporation and Sunnova Intermediate Holdings, LLC, has filed for Chapter 11 bankruptcy protection. This filing was made on Sunday in the United States Bankruptcy Court for the Southern District of Texas. The company aims to continue operations as "debtors in possession" while seeking to sell certain assets under court supervision. According to InvestingPro data, the company has been operating with a significant debt burden, with a concerning debt-to-capital ratio of 91% and an Altman Z-Score indicating financial distress.
The bankruptcy filing automatically triggered defaults and accelerated obligations under several debt instruments, including indentures dated August 17, 2021, and September 26, 2023, and two warehouse facilities under amended credit agreements from March 20, 2025, and August 22, 2024. InvestingPro analysis reveals the company’s total debt reached $8.5 billion, with short-term obligations exceeding liquid assets. Get access to the comprehensive Pro Research Report for deeper insights into Sunnova’s financial position and debt structure.
Sunnova expects to receive a delisting notice from the New York Stock Exchange due to the bankruptcy filing. The company has stated it does not plan to appeal this decision, and its common stock is likely to be delisted. However, this will not affect the company’s reporting requirements to the U.S. Securities and Exchange Commission.
The company is seeking court approval for operational motions to minimize the impact of bankruptcy on employees and vendors. These motions include requests to pay wages, benefits, and certain vendor obligations.
Sunnova has also been in confidential discussions with noteholders and lenders regarding potential financing arrangements. These discussions led to the release of "Cleansing Materials," which contain confidential information shared with stakeholders.
The Chapter 11 filing is a significant step for Sunnova as it navigates financial restructuring. The company has cautioned that trading in its securities is speculative and poses substantial risks. Holders of Sunnova’s common stock may face significant or complete loss depending on the bankruptcy’s outcome. The stock has already experienced a dramatic 95% decline over the past year, with InvestingPro data showing the company’s market capitalization has shrunk to just $27.5 million. InvestingPro subscribers have access to 18 additional key insights about Sunnova’s financial health and market position.
This information is based on a press release statement filed with the SEC.
In other recent news, Sunnova Energy has filed for Chapter 11 bankruptcy protection as it faces significant financial difficulties, including a total debt of $10.67 billion. The company has also announced a substantial workforce reduction, laying off approximately 718 employees, which constitutes about 55% of its workforce, in an effort to cut costs. Additionally, Sunnova extended its forbearance agreement with holders of its senior notes, providing more time to address a $23.5 million interest payment default. This extension aims to prevent an event of default that could accelerate the maturity of the notes. The company is also dealing with a compliance issue with the New York Stock Exchange for failing to file its quarterly financial report on time. Sunnova has been given until November 19, 2025, to submit the overdue report to regain compliance. Despite these challenges, Sunnova’s securities remain listed on the NYSE, although there is no guarantee of meeting the compliance requirements within the allotted timeframe. The company continues to explore financial and strategic alternatives amid ongoing financial pressures.
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