SunPower Enters Stalking Horse Asset Purchase Agreement

SunPower Corp., a leading residential solar technology and energy services provider in the U.S., has announced a significant move in its strategic restructuring efforts.

SunPower Corp., a prominent residential solar technology and energy services provider, has announced a significant move in its strategic restructuring efforts.

The company has entered into a Stalking Horse Asset Purchase Agreement (APA) with Complete Solaria, Inc., positioning Complete Solaria as the initial bidder for SunPower's Blue Raven Solar business, New Homes division, and its non-installing dealer network.

This agreement is part of SunPower's broader plan to address financial challenges through a court-supervised bankruptcy process.

As part of the APA, Complete Solaria will acquire the specified assets and assume certain liabilities for $45 million in cash, pending approval from the United States Bankruptcy Court for the District of Delaware.

The transaction is expected to be completed by mid to late September, allowing other interested parties to submit competing bids.

SunPower has simultaneously filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. This step aims to facilitate an orderly sale process and maximize the value of the company's remaining assets.

The Chapter 11 filing enables SunPower to continue operations while restructuring its financial obligations.

Tom Werner, Executive Chairman of SunPower, expressed optimism about the proposed transaction, stating, "For nearly 40 years, SunPower has made solar energy more accessible to Americans, driven by our mission to change the way our world is powered. We are confident Complete Solaria's CEO, T.J. Rodgers, will carry forward our vision to shape the future of residential solar as a pioneer in this space."

Werner emphasized that the transaction offers a significant opportunity for key parts of SunPower's business to continue its legacy under new ownership. Complete Solaria's CEO, T.J. Rodgers, highlighted the importance of the acquisition in the context of the growing solar energy market.

"Solar energy utility generation costs are now 2.4 cents per kilowatt hour (kWh) versus 3.6 cents per kWh for coal, the cheapest fossil fuel source," said Rodgers.

He noted that the move to zero-emission solar energy is accelerating, and homeowners can now generate their own power for 8-10 cents per kWh, which is below the price of utility power in most states.

"This acquisition will strengthen our position in the market and put more muscle behind our commitment to driving the future of clean, reliable energy."

SunPower is seeking Court approval to access necessary prepetition cash collateral to fund its business operations and administrative expenses during the Chapter 11 process. The company has filed several customary motions to ensure it can meet its obligations to employees and maintain operations during the court-supervised proceedings.

Following the sale process, SunPower plans to liquidate any remaining assets and undergo an orderly winddown of its operations.

SunPower remains a leading solar, storage, and energy services provider in North America, offering integrated solar and storage solutions that provide customers with control over electricity consumption and resiliency during power outages, along with cost savings.

This move by SunPower illustrates the complexities of navigating financial difficulties while striving to maintain industry leadership and commitment to a sustainable energy future.