Sunnova Energy International Inc. has received court approval to sell substantially all its assets and business operations to its debtor-in-possession lenders, a move expected to ensure long-term continuity for most customers under new ownership.
Sunnova Energy International Inc. announced a critical development in its Chapter 11 bankruptcy proceedings, having secured approval from the U.S. Bankruptcy Court for the Southern District of Texas for the sale of substantially all of its assets and business operations. The Sale Transaction will see an ad hoc group of debtor-in-possession (DIP) lenders, including affiliates or entities controlled by GoodFinch Management LLC, acquire the core business.
The landmark decision, reached after a competitive court-supervised sale process, was deemed the “highest or otherwise best bid” for Sunnova’s assets, maximizing value for all stakeholders involved in the bankruptcy proceedings. The transaction encompasses the sale of Sunnova’s residential solar servicing and operations and maintenance (O&M) platform, along with its extensive solar generation and storage portfolio. In exchange, the Purchasers will provide a credit bid of the existing DIP financing, an additional $25 million in cash consideration, and cover certain cure costs.
Paul Mathews, Chief Executive Officer of Sunnova, expressed optimism about the outcome, stating, “This transaction represents a significant step forward that secures the future of Sunnova’s operations under new ownership.” He further emphasized his pride in the company’s achievements in residential solar and storage innovation and the dedication of its team.
The sale is anticipated to conclude in August 2025, pending the satisfaction of customary closing conditions. Crucially, Sunnova has assured full continuity of customer service and system management for nearly all in-service customers as the transition to new ownership unfolds. As part of the Sale Transaction, SunStrong Management, LLC (SunStrong) is poised to assume the responsibility of servicing solar and storage systems. During the interim period leading up to the closing, Sunnova will continue to monitor and manage its in-service solar and storage systems in the ordinary course of business, ensuring uninterrupted service for its clientele.
This Sale Transaction operates independently of Sunnova’s previously announced asset purchase agreement and settlement agreement with ATLAS SP Partners (ATLAS). The company confirmed that ATLAS will continue to lead negotiations with specific dealers and installers who have previously collaborated with Sunnova, with the ongoing objective of completing certain in-process solar systems. This dual-track approach aims to resolve all outstanding matters while ensuring a smooth transition for the core business. The court’s approval signifies a pivotal moment for Sunnova, allowing it to emerge from Chapter 11 with a clear path forward under new, financially stable ownership.
