SunPower Corporation ( SPWR ) shares are trading lower after the company disclosed an asset purchase agreement with Complete Solaria, Inc. ( CSLR ) , where Complete Solaria ( CSLR ) will acquire SunPower’s Blue Raven Solar business, New Homes business, and non-installing Dealer network.

Under the APA, pending Court approval, Complete Solaria ( CSLR ) will acquire the assets and assume certain liabilities for $45 million in cash.

Simultaneously, SunPower and its subsidiaries filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, allowing other parties to submit competing bids for its assets.

SunPower seeks Court approval to finalize the deal by mid to late September and plans to continue selling its remaining assets under Section 363 of the U.S. Bankruptcy Code.

SunPower has requested Court approval to use prepetition cash collateral for funding operations and administrative expenses during Chapter 11.

The company is filing motions to ensure it can meet employee obligations and expects these requests to be approved. After an expedited sale process, SunPower plans to liquidate remaining assets and wind down operations efficiently.

Tom Werner, Executive Chairman at SunPower said, “In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership.”

“We are working to secure long-term solutions for the remaining areas of our business, while maintaining our focus on supporting our valued employees, customers, dealers, builders, and partners.”

Last month, SunPower shares took a hit after the company informed clients it was halting product shipments and deactivating lease and power purchase agreements.

Price Action: SPWR shares are down 22.5% at $0.6260 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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