Residential solar installer Lumio has filed voluntary petitions for relief under Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.
The company expects to complete its sale process in less than two months, in which time its operations will continue as usual.
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Prior to filing Chapter 11 bankruptcy, Lumio entered into a stalking horse asset purchase agreement (APA) with an affiliate of asset management White Oak Global Advisors, LLC. The price of purchase of all of Lumio’s assets has been set at US$100 million in the form of a credit bid. If selected, White Oak aims to offer significant equity ownership to the Lumio’s employees.
The residential solar installer filed for Chapter 11 bankruptcy less than four years after its creation, which was formed by the merging of four regional solar providers and a software company. It is currently present in 16 US states, including California, Arizona and Texas.
Andrew Walton, CEO at Lumio, said: “With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalize on growth opportunities and better serve our customers through every step of their switch to solar. As we complete our sale process, we are committed to continuing to deliver our industry leading solutions and an excellent experience to our customers across the country.”
Lumio’s Chapter 11 bankruptcy is the latest in the US residential solar sector, following SunPower last month – which entered a stalking horse APA with residential solar company Complete Solaria – and residential installer Titan Solar Power ceasing operations in June this year, after “negotiations fell through” with a potential buyer.
