U.S. Bankruptcy Court Approves $45 Million Bid for SunPower Assets

(Reuters) – A U.S. bankruptcy court judge approved on Thursday a $45 million bid for the assets of failed residential solar company SunPower (OTC:SPWRQ) by rival Complete Solaria.

WHY IT’S IMPORTANT

The approval of the “stalking horse” bid means California-based Complete Solaria will acquire SunPower’s major assets if no higher offers are made in the coming weeks.

The included assets consist of:
– The company’s solar business for new homes
– A sales business for non-installing dealers
– The Blue Raven (NASDAQ:RAVN) division, which was acquired in 2021 for $165 million.

SunPower was a pioneer in the U.S. residential solar market but collapsed earlier this month following a subpoena from the U.S. Securities and Exchange Commission regarding its accounting practices and the departure of its CEO.

The U.S. residential solar industry is also struggling due to higher interest rates and reduced incentives in California, its top market.

WHAT’S NEXT

Judge Craig Goldblatt of the Delaware bankruptcy court set a Sept. 10 deadline for additional bids and will hold an auction on Sept. 16 if necessary. The court established a sale objection deadline of Sept. 20.

Maxeon, the Singapore-based solar panel maker spun off from SunPower in 2020, objected to the stalking horse bidding rules, claiming it owns the rights to SunPower trademarks outside of the United States. This objection was overruled.

A Maxeon spokesperson did not immediately respond to a request for comment.