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Sunnova Energy International Inc. won court approval to start drawing on a new $90 million bankruptcy loan, funding that will help keep the rooftop solar company afloat while it sells its business in Chapter 11.
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During a Thursday court hearing, Judge Alfredo Perez authorized Sunnova to make an initial $15 million draw on the loan, and said the company could seek approval to draw the remaining amount at a future hearing. The financing came together in the days after Sunnova sought court protection and gives the company runway to continue marketing its assets. Lenders providing the loan have also agreed to acquire Sunnova’s assets, an offer that would be subject to higher bids at a future Chapter 11 auction.
Sunnova, one of the largest rooftop solar panel companies in the US, filed Chapter 11 on June 8, following one of its subsidiaries that filed bankruptcy in Texas days earlier. The company said it had roughly $8.9 billion of long-term debt compared to $13.5 million in available cash at the time it sought court protection.
Besides the bankruptcy loan, Sunnova has lined up smaller sales to boost liquidity. Those include a $16 million sale of assets from its new homes business unit to Lennar Homes LLC.
Sunnova grew rapidly since its founding in 2012, taking advantage of government incentives for residential solar installations. But a number of solar panel companies have filed bankruptcy in recent years amid rising interest rates and a reduction in state incentives in California. Republicans are also advancing a spending bill that would end tax credits for companies that lease rooftop solar systems and homeowners who buy them outright.
The case is Sunnova Energy International Inc., number 25-90160, in the US Bankruptcy Court for the Southern District of Texas.
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