After filing for Chapter 11 bankruptcy protection in March this year, Sungevity has been approved for sale to Minnesota private equity firm Northern Pacific Group for US$50 million.
Kevin Gross, a judge at the Delaware-based US Court of Bankruptcy approved the lone offer earlier this week, and just one month after Sungevity opened its Chapter 11 following a failed US$350 million acquisition by Easterly Capital.
“This has been a difficult case, and a speedy case like this one generally is,” Judge Gross said. “These debtors were in real extremis, and required a quick sale.”
Sungevity has US$188.9 million in debts and US$800 million in assets. The sale order hands over Sungevity in exchange for its combined debt claims.
“The agreement we have reached with the team led by Northern Pacific Group and its co-investors is a testament to their confidence in the future of Sungevity’s business,” said William Nettles, chief administrative officer of Sungevity, in a statement. “The actions we have announced will allow Sungevity to emerge as a stronger and more competitive company.”
Northern Pacific Group has said that it has the ability to provide additional funds if needed after the sale’s close.
“We expect to conduct business in the ordinary course with all customers,” Sungevity wrote in a blog post. “Our commitment to service is unwavering and we will continue providing our valued customers with the same products and quality of service they have come to expect from us.”