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(Bloomberg) — Sunnova Energy International Inc., a seller of rooftop solar-panel systems, is in discussions with its creditors to borrow money to finance a potential bankruptcy, according to people familiar with the situation.
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Those 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, said the people, who asked not to be identified discussing a private matter.
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The negotiations come as the struggling Houston-based company is running up against the clock. It missed an interest payment at the beginning of April on its 11.75% senior notes due in 2028 and the 30-day grace period to make that payment and avoid default ends May 1.
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Negotiations are fluid and no final decision has been made, the people said. Sunnova declined to comment.
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The residential solar sector has suffered as high interest rates and lower government incentives made it more expensive for households to buy equipment. Meanwhile, President Donald Trump’s moves against green energy mean projects see new risks, hurting growth outlooks. In March, Sunnova said that there is substantial doubt it will remain in business.
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The Wall Street Journal earlier reported about the company’s bankruptcy plans.
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Sunnova disclosed Tuesday that it appointed Ryan Omohundro, a managing director at turnaround firm Alvarez & Marsal as its chief restructuring officer.
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Last month, the company borrowed $185 million through a term loan from KKR & Co. so it can continue to pay the independent contractors it uses to install and maintain solar systems. That loan would not be part of any potential bankruptcy proceedings.
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