The U.S. Bankruptcy Court for the Southern District of Texas has approved the sale of substantially all assets and business operations of Sunnova Energy International to an ad hoc group of debtor-in-possession lenders and affiliates or entities controlled by GoodFinch Management, as the company’s debtor-in-possession lenders. This milestone represents a successful outcome in the company’s chapter 11 cases that maximizes stakeholder value and preserves continuity of core operations for customers and partners.
The sale transaction, which is expected to close in August 2025 subject to customary closing conditions, was determined to be the highest or otherwise best bid for the company’s assets following a competitive court-supervised sale process designed to maximize value for all stakeholders. This transaction includes the sale of Sunnova’s residential solar servicing and O&M platform and its solar generation and storage portfolio to the purchasers in exchange for a credit bid of the debtor-in-possession (DIP) financing, $25 million of cash consideration and certain cure costs.
“This transaction represents a significant step forward that secures the future of Sunnova’s operations under new ownership,” Paul Mathews, CEO of Sunnova, said. “I’m incredibly proud of the platform we’ve built, the innovation we’ve brought to residential solar and storage and the dedication of our team. We are excited about the future and remain focused on delivering reliable service to our customers and partners.”
Sunnova expects full continuity of customer service and system management for substantially all in-service customers as the company transitions to new ownership. In connection with the Sale Transaction, SunStrong Management will take over servicing of solar and storage systems. As the company works to complete the sale transaction, Sunnova continues to monitor and manage in-service solar and storage systems in the ordinary course of business.
The sale transaction does not impact the company’s previously announced asset purchase agreement and settlement agreement with ATLAS SP Partners. ATLAS continues to direct negotiations with certain dealers and installers that have worked with Sunnova in the past with the goal of completing certain in-process solar systems.
Kirkland & Ellis and Bracewell are serving as legal counsel, Alvarez & Marsal is serving as financial advisor, Moelis & Company is serving as investment banker and C Street Advisory Group is serving as strategic communications advisor to the company.
Paul, Weiss, Rifkind, Wharton & Garrison and Porter Hedges are serving as legal counsel and Evercore is serving as investment banker to the ad hoc group. Norton Rose Fulbright US is serving as legal counsel to SunStrong and GoodFinch.
