Last year, SunPower, the Richmond, CA residential solar power company, was late in filing its third quarter results, due November 29, 2023. According to an SEC disclosure dated December 11, SunPower’s missed deadline triggered a covenant breach and default on $300 million in outstanding debt to lenders including Bank of America, Citi, JPMorgan Chase and Apollo Management. Suddenly, SunPower, the once high flying rooftop solar company valued as high as $9 billion, was at the mercy of lenders who were within their rights to demand immediate payment of principal and interest.

When SunPower did release its quarterly report December 18, the news wasn’t good. Revenues were down 10% over the previous year, with fewer customers signing up, especially in California. That's in large part because higher interest rates have driven up the cost of capital — not good when you're selling assets that require a big upfront investment that takes 20 years of solar energy collection to pay back.

After a “going concern” warning and restating three years of financials, could SunPower be the domino that triggers a solar shakeout?

Read the full story on Forbes: https://www.forbes.com/sites/christopherhelman/2024/01/16/sundown-despite-defaulting-on-300-million-in-loans-this-residential-solar-company-is-still-worth-700-millionfor-now/?sh=4e1f2a795e4c

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