SunPower gets more waiver extensions amid debt fiasco
(Image by Sebastian Ganso from Pixabay)
SunPower, a residential solar technology and energy services provider, announced that it has received additional waiver extensions from Atlas Securitized Products Holdings, L.P., and Bank of America, providing for the extension of the latest temporary waivers until February 16, 2024. This follows a debt fiasco that can be traced back to an inventory reporting error.
Additionally, the company announced the receipt of commitments for $20 million in financing from its majority shareholders TotalEnergies and Global Infrastructure Partners. SunPower says it will use the runway afforded by this financing and the extensions to continue discussions with its financial partners as it evaluates alternatives toward a long-term financial solution.
In December 2023, SunPower announced it had breached a credit agreement due to late financial reporting caused by a subsidiary’s inventory reporting error, per Reuters, which allowed its lenders to immediately demand the repayment of its $65 million debt. The company soon received a waiver from its lenders preventing technical default and providing $75 million in funding, extending the timeframe for repayment.
SunPower said it would likely not be able to continue operations if it is not able to secure more funding.
