Key Takeaways
- Sunnova Energy International reportedly is looking to restructure its debt, and that may include filing for bankruptcy protection.
- The Wall Street Journal said the big maker of residential solar panels is putting together financial data needed to start negotiations with creditors.
- Earlier this week, founder and longtime CEO William “John” Berger resigned as Sunnova’s financial struggles grew.
Sunnova Energy International (NOVA) traded at an all-time low on word the manufacturer of rooftop solar panels is working to restructure its debt, and that could include declaring bankruptcy.
The Wall Street Journal reported that the company is preparing to meet with creditors to consider options to ease its $8.5 billion in debt. The paper added that could happen in or out of bankruptcy protection.
Citing people familiar with the matter, the Journal said Sunnova is working with the law firm of Baker Botts and investment bank JPMorgan to put together financial information needed to begin talks with lenders and bondholders about reducing its debt and addressing near-term bond maturities.
It explained that Sunnova’s most immediate concern was dealing with almost $1 billion worth of bonds and convertible notes due in 2026.
Longtime CEO Stepped Down Monday
The news came just three days after the company named Paul Mathews to be its new CEO, taking over immediately for founder and longtime CEO William “John” Berger, who stepped down amid Sunnova’s financial woes.
When reached by Investopedia about the report, a spokesperson for Sunnova had no comment.
Shares of Sunnova Energy International plummeted 24% in late-morning trading. They have lost about 94% of their value in the past 12 months.
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