March 14 (Renewables Now) - Investors led by Northern Pacific Group have agreed to acquire US rooftop solar installer Sungevity Inc, which has just commenced voluntary Chapter 11 proceedings.
Sungevity announced on Monday it has voluntarily filed for Chapter 11 protection in a drive to facilitate a financial and corporate restructuring aimed at bolstering its balance sheet and recapitalising the company.
"The Board and its advisors reviewed a range of options and ultimately decided that a court-supervised sale represents the best path forward for our customers, suppliers, employees and business partners," said Andrew Birch, Sungevity's CEO.
Under the terms of the deal, Minnesota-based private equity firm Northern Pacific Group will buy substantially all of Sungevity’s assets, including the equity interests in its European activities. The agreement sets the floor, or minimum acceptable bid, for an upcoming court-supervised auction. The investment group has committed to provide up to USD 20 million (EUR 18.8m) in financing to Sungevity so it could support its day-to-day operations and fund the sale process.
The completion of the sale is scheduled for the end of next month.
The solar firm’s newly-appointed chief administration officer, William Nettles, commented that the fresh deal will enable Sungevity “to emerge as a stronger and more competitive company”.
Last year, Sungevity agreed to merge with a blank check company owned by private investment firm Easterly LLC in an attempt to secure a Nasdaq listing. Easterly Acquisition Corp (NASDAQ:EACQ) announced the cancellation of that agreement at the start of the year. At the time, CEO Andrew Birch said, as cited by Reuters, that the failure to conclude the transaction had nothing to do with the company’s financial performance and even added that Sungevity was “very close” to becoming profitable.
(USD 1.0 = EUR 0.940)