.August 6, 2024 12:36 PM

SunPower (NASDAQ:SPWR) has filed for Chapter 11 bankruptcy protection on August 5, 2024, to restructure debt and maximize asset value. Shares are trading over 20% lower intra-day as the solar power company faces financial strain.

In a “stalking horse” agreement, SunPower plans to sell Blue Raven Solar, New Homes, and non-installing Dealer businesses to Complete Solaria, Inc. for $45 million in cash. Higher bids can be made during a court-supervised auction for these assets.

The bankruptcy filing comes after the resignation of SunPower’s CEO in February and a Securities and Exchange Commission subpoena related to accounting practices. Operations were halted in June, including new product shipments and customer contracts.

SunPower estimates its assets and liabilities to be between $1 billion and $10 billion.