SunPower stock falls after solar power company files for bankruptcy
By Steve Gelsi
Solar stock that crested near $100 in 2007 is now below $1 a share
SunPower Corp.'s stock fell 37% to 50 cents a share on Tuesday after the solar power company filed for protection from its creditors under Chapter 11 of the U.S. bankruptcy code.
SunPower (SPWR) also inked an asset sale agreement for $45 million in cash to buyer Complete Solaria Inc. (CSLR).
Complete Solaria stock was up 18% in early trades.
Once high-flying SunPower reported $1.22 billion of assets and $1.12 billion in total debts in its bankruptcy case, which was filed in U.S. Bankruptcy Court for the District of Delaware.
Complete Solaria said it received the "stalking horse" position in the bankruptcy to provide it with the first bid and the right to negotiate an asset purchase agreement with SunPower.
Complete Solaria plans to combine three businesses from the so-called Solar Valley in Salt Lake City with SunPower's business. The move would result in a reduction of 1,134 employees to 1,273 people at Complete Solaria, the company said.
SunPower's largest creditor is Zyxel Communications Inc., which is owed $15.5 million, followed by $6.5 million owed to Xiamen Ampace Technolgy Ltd., $4.3 million owed to Kuehne & Nagel Inc. and $4 million owed to Enphase Energy Inc.ENPH, according to a filing.
SunPower's stock hit an all-time closing high of $97.92 a share on Nov. 6, 2007, according to Dow Jones Market Data.
More recently, the stock peaked at a closing high of $54.01, on Jan. 29, 2021.
SunPower's woes accelerated in July when its stock fell 75% in the middle of the month after the company stopped lease and power project installations, which analysts attributed to balance-sheet constraint.
The company has also faces weakness in demand for solar power projects.
In May, SunPower was one of several heavily shorted stocks lifted by the meme-stock revival sparked by the return to social media of influential trader Keith Gill, also known as Roaring Kitty.
Also read: SunPower's stock just had its worst week on record, and this analyst sees more pain ahead
Also read: SunPower's woes spell good news for these solar names
James Rogers contributed
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-06-24 1037ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst
-
How GLP-1 Drugs Like Ozempic Are Boosting Biopharma Stocks