Sungevity Receives $20M in Bankruptcy Financing

by San Antonio Attorney

Sungevity has found a buyer for its leftover assets.

Private equity firm Northern Pacific Group wants to buy the solar electricity business.

Sungevity filed for Chapter 11 bankruptcy in March and accepted an “asset purchase agreement” headed by Northern Pacific Group. That deal guarantees a maximum $20 million to finance daily operations.

An alternate way to view this is Sungevity’s remaining assets just got acquired for approximately$20 million. The Oakland, CA-based company had revealed a sum of $850 million in venture capital and project funding, with about $200 million of that amount pouring in as equity capital.

A statement released by the company said that Northern Pacific Group is going to assume almost all of Sungevity’s assets, which includes the equity interests of its operations in Europe. It was also said the acquisition deal sets the minimum price for a bankruptcy auction, which is intended to obtain the maximum offer possible.

The new chief administration officer of Sungevity is William Nettles.

The company has reportedly laid off 66 percent of its remaining employees. Initially, the company refused to compensate severance or vacation days — it gave out payments for the last salary period and sent workers on their way.

The offloading of workers began in January following an anticipated merger’s fallout in 2016. That failed merger was expected to bring $200 million capital infusion.

Sungevity charged itself as an “asset light” enterprise model that maintains low costs and makes it simpler for the business to expand.

The company’s share of the market was the highest at 2.5% in 2014.

Sungevity is not doing their solar installations and financing. Their sales depend on channel partners and not direct sales.

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