Bloomberg News reports that the Trump administration has revoked a $3 billion loan guarantee previously granted to Sunnova Energy, according to a statement from the company.
The Trump administration terminated the $3 billion loan guarantee previously awarded to Sunnova Energy International Inc. after the company informed officials it no longer planned to utilize the funding. According to Sunnova, the U.S. Department of Energy officially canceled the loan obligation on Friday. The company had accessed approximately $371 million of the guarantee, which was part of a broader clean energy financing initiative launched under the Biden administration to support renewable energy deployment and address climate change.
Earlier this year reports surfaced that the seller of rooftop solar panel systems is in discussions with its creditors to borrow money to finance a potential bankruptcy. The discussions are part of a dual track strategy – to prepare for bankruptcy while also seeking bridge financing to give it more time to restructure its debt out of court – according to Bloomberg.
The company is preparing to file for bankruptcy, likely under Chapter 11, after struggling with $8.5 billion in debt and waning liquidity. Sunnova is exploring options including a bridge loan to restructure its debt and is in negotiations with creditors. While they are exploring a bridge loan and potential reorganization, Sunnova has already stopped originating new business and furloughed many employees.
The seller of rooftop solar-panel systems, is laying the groundwork for a bankruptcy filing that could happen within the coming weeks, according to people familiar with the situation.
The company is considering filing in Texas, but no final decision has been made, said the people, who asked to not be identified discussing a private matter.
Fitch Ratings has downgraded Sunnova Energy International Inc.’s (Sunnova) and Sunnova Energy Corporation’s (SEC) Long-Term Issuer Default Ratings (IDRs) to ‘RD’ from ‘C’. Fitch has affirmed SEC’s senior unsecured debt rating at ‘C’ with a Recovery Rating of RR4′.
The downgrade reflects the uncured missed interest payment on Sunnova’s $400 million senior notes maturing in 2028, which was due on April 1, 2025, and the expiration of the 30-day grace period. Sunnova has entered into a forbearance agreement that extends from May 2, 2025, to May 8, 2025, or until any other defined termination event occurs.
Pump Radar
Stock Alerts