Sunnova Energy (NYSE:NOVA), a major US residential solar and storage provider, has filed for Chapter 11 bankruptcy protection in Texas as it struggles with more than $10 billion in liabilities, weakening demand, and a downturn in the rooftop solar market.
In its bankruptcy filing, Sunnova listed estimated assets and liabilities to be in the range of $10 billion to $50 billion. As of the end of 2024, its total debt stood at approximately $10.67 billion.
The filing follows a similar petition from one of its subsidiaries, Sunnova TEP Developer, just a week earlier.
Sunnova owes millions to both financial institutions and more than $75 million to local solar installers operating under its third-party ownership contracts.
In a bid to preserve cash, the company said earlier this month that it would cut about 55% of its workforce, about 718 employees.
Court documents reveal that Sunnova holds about $13.5 million in cash, while its funded debt totals roughly $8.9 billion.
The company intends to sell “all or substantially all” of its assets and conduct an orderly wind-down of its operations, per the filing.
Sunnova had been in talks with creditors since March after issuing a going concern warning.
That same month, the company secured a $185 million term loan from KKR & Co to extend its financial runway while it attempted to restructure its obligations.
Sunnova shares dropped about 30% in early trade before the stock was halted.