Verengo Solar Files Chapter 11 Bankruptcy

by San Antonio Attorney

Verengo Solar filed for Chapter 11 bankruptcy on Sept.  23, hoping to recover its position as a primary installer of solar panels in California and spread out nationally.

The company revealed that part of its bankruptcy plan is to sell around 20,000 of its installed products to Crius Energy, a retail energy manufacturer.

A few days before Verengo filed for bankruptcy, it defaulted on a bank loan.  The sale agreement with Crius Energy was revealed during that time.  The pact is speculated to be valued at $11.9 million.

According to some insiders in the industry, they were not expecting the bankruptcy of Verengo.  The industry is still experiencing the impact of SunEdison’s bankruptcy.  However, indications of an impending break down were obvious in 2014, when the company was reportedly selling its assets despite receiving recognition as one of the best solar energy companies in the country.

Crius Energy LLC is a green energy vendor, providing solar products, natural gas and electricity to more than 900,000 commercial and residential clients in the U.S.  The purchase of Verengo represents a substantial investment in the company’s solar assets.

Verengo, a Torrance-based company, says the new ownership is not going to affect existing clients, but will help it to concentrate on its important mission of increasing its share of the market in the state of California and serves a stage for the business to extend its presence nationally, something Verengo has failed to achieve on its own.

Analysts say that if Crius continues with its own past precedent, Verengo Solar will remain as a separate unit from its other companies and market it under the Crius Energy brand.

Court documents show that Verengo has liabilities between $10 million and $50 million.

The company has about 1,000 employees, according to reports.

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