The US Bankruptcy Court for the Southern District of Texas has approved the sale of substantially all of residential solar installer Sunnova’s assets and business operations.
The sale will be made with an ad hoc group of debtor-in-possession (DIP) lenders and affiliates or entities controlled by asset management company GoodFinch Management.
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The sale transaction is expected to close in August 2025, subject to customary closing conditions. It will include the sale of Sunnova’s residential solar servicing and operations and maintenance (O&M) platform, ServiceCo, and its solar generation and storage portfolio in exchange for a credit bid of the DIP financing, US$25 million of cash consideration and certain cure costs.
The sale of these assets comes less than a month after the company entered into a stalking horse asset purchase agreement with Omnidian, a residential, commercial and industrial (C&I) solar plant performance assessment company that had made a US$7 million offer for the aforementioned assets.
A stalking horse buyer is a company nominated by a company filing for bankruptcy to make an initial bid for its assets, to set a benchmark for other potential buyers to make bids.
“This transaction represents a significant step forward that secures the future of Sunnova’s operations under new ownership,” said Paul Mathews, CEO of Sunnova.
As the residential solar installer transitions to new ownership, it expects full continuity of customer service and system management for substantially all in-service customers. Related to the sale transaction, asset management company SunStrong Management will take over servicing of solar and storage systems.
According to the company, the sale of these assets will not impact another asset purchase agreement and settlement agreement made with investment firm ATLAS SP Partners, for which Sunnova will receive US$11 million.
The company filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in June of this year, during which time residential solar financing platform company Mosaic also filed for Chapter 11 of the US Bankruptcy Code.
More details regarding the company’s Chapter 11 process can be accessed here.
