SunPower stock falls after solar power company files for bankruptcy

By Steve Gelsi

Solar stock that crested near $100 in 2007 is now below $1 a share

SunPower Corp.'s stock fell 37% to 50 cents a share on Tuesday after the solar power company filed for protection from its creditors under Chapter 11 of the U.S. bankruptcy code.

SunPower (SPWR) also inked an asset sale agreement for $45 million in cash to buyer Complete Solaria Inc. (CSLR).

Complete Solaria stock was up 18% in early trades.

Once high-flying SunPower reported $1.22 billion of assets and $1.12 billion in total debts in its bankruptcy case, which was filed in U.S. Bankruptcy Court for the District of Delaware.

Complete Solaria said it received the "stalking horse" position in the bankruptcy to provide it with the first bid and the right to negotiate an asset purchase agreement with SunPower.

Complete Solaria plans to combine three businesses from the so-called Solar Valley in Salt Lake City with SunPower's business. The move would result in a reduction of 1,134 employees to 1,273 people at Complete Solaria, the company said.

SunPower's largest creditor is Zyxel Communications Inc., which is owed $15.5 million, followed by $6.5 million owed to Xiamen Ampace Technolgy Ltd., $4.3 million owed to Kuehne & Nagel Inc. and $4 million owed to Enphase Energy Inc.ENPH, according to a filing.

SunPower's stock hit an all-time closing high of $97.92 a share on Nov. 6, 2007, according to Dow Jones Market Data.

More recently, the stock peaked at a closing high of $54.01, on Jan. 29, 2021.

SunPower's woes accelerated in July when its stock fell 75% in the middle of the month after the company stopped lease and power project installations, which analysts attributed to balance-sheet constraint.

The company has also faces weakness in demand for solar power projects.

In May, SunPower was one of several heavily shorted stocks lifted by the meme-stock revival sparked by the return to social media of influential trader Keith Gill, also known as Roaring Kitty.

Also read: SunPower's stock just had its worst week on record, and this analyst sees more pain ahead

Also read: SunPower's woes spell good news for these solar names

James Rogers contributed

-Steve Gelsi

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08-06-24 1037ET

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