Lumio has filed voluntary petitions for relief under Chapter 11 in Delaware, US
This will help it complete a value-maximizing sale process and strengthen its financial position
A White Oak affiliate has offered to acquire almost all of its assets for around $100 million under an APA
After SunPower Corporation, another residential solar installer in the US, Lumio, has filed for protection under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. These voluntary petitions are aimed at completing a ‘value-maximizing sale process and strengthen its financial position,’ it explained.
Lumio has also received a stalking horse bid from an affiliate of global alternative asset manager, and its primary senior secured lender, White Oak Global Advisors, LLC. Under the stalking horse asset purchase agreement (APA), the White Oak affiliate has proposed to acquire substantially all of the company’s assets for a purchase price of close to $100 million in the form of a credit bid.
Lumio said if offered, it will accept a higher bid received through a court-supervised process. In the meantime, all business operations will continue without interruption. White Oak has also agreed to provide $8 million of debtor-in-possession (DIP) financing to support its operations on a daily basis.
“With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalize on growth opportunities and better serve our customers through every step of their switch to solar,” said Lumio’s current CEO Andrew Walton.
Lumio has had a short operating period in the industry as it was launched only in 2021 by Co-Founder and Chairman Greg Butterfield, and Co-Founder and CEO Jonathan Gibbs. Serial entrepreneur Butterfield was previously the CEO of another residential solar power company, Vivint Solar, which was later acquired by Sunrun.
In August 2024, US residential solar installer and financier SunPower Corporation filed for relief under Chapter 11 as its business struggled with low demand and a high interest rate environment in the US market. It also received a stalking horse bid from its competitor Complete Solaria (see SunPower Corporation & Subsidiaries File For Bankruptcy Protection Under Chapter 11).
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