New Delaware Chapter 11 Filing – Sungevity, Inc. Case No. 17-10561 (LSS)

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Sungevity, Inc., one of the largest private residential solar installation companies in the U.S. with operations in Belgium, the Netherlands, Germany, and the United Kingdom, and three of its affiliates, have filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-10561).  The petition provides a consolidated list of the top 20 creditors and assets of between $100 and $500 million.  According to the First Day Declaration, the company’s rapid expansion over the last decade, among other reasons, resulted in a severe liquidity crisis and an overleveraged balance sheet.  The debtors believe that an expedited sale of substantially all of the assets is the best way to maximize value for the estates and to prevent a liquidation of the debtors.  The debtors enter chapter 11 with LSHC Solar Holdings, LLC (“LSHC”), a newly formed investment vehicle, and Hercules Capital, Inc., the Debtors’ senior secured pre-petition lender, as the stalking horse bidders and with LSHC as DIP lender who has agreed to provide $20 million in DIP financing. The Honorable Laurie Selber Silverstein will preside over these cases.  KCC is the proposed claims agent. The debtors have issued a press release regarding their restructuring.

Contact Norman L. Pernick and Nicholas J. Brannick for more information.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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