Sunlight Financial Holdings Inc. filed for Chapter 11 bankruptcy in the US after arranging a deal to be bought by a solar energy industry investor group that includes a lender.
The buyers include an affiliate of Greenbacker Capital Management, Sunstone Credit, IGS Ventures and secured lender Cross River Bank, according to a Monday statement from the company, which provides homeowner loans for rooftop solar panels.
As part of their restructuring plan to reduce debt, the consortium would invest “significant” new capital, according to the statement. Sunlight also said it would seek an expedited in-court process, with suppliers and employees paid.
In its Delaware bankruptcy court filing dated Oct. 30, Sunlight listed liabilities between $500 million to $1 billion, while assets were in the range of $100 million to $500 million.
A bank loan for just over $1 million from Georgia’s Own Credit Union featured atop the list of unsecured claims.
Sunlight went public through a merger in 2021 with a special purpose acquisition company backed by Apollo Global Management Inc. Its shares slumped this year after it flagged “substantial doubt” about its ability to continue operations.
Investors sued Apollo and other architects of the blank-check merger earlier this year, claiming shareholders were duped into participating in a deal that made millions for insiders.
--With assistance from Michael Sin, Nurin Sofia and Janine Phakdeetham.
