SunPower stock plunges as it warns debt could threaten businesses

Trending Videos


  • SunPower Corp. shares fell more than 30% after the solar company warned it could go bankrupt if its creditors decided to demand immediate payment of its debt.
  • The supplier of Solar Energy Equipment and Services said it would not have sufficient liquidity to cover normal business operations if it had to pay its obligations.
  • The company has received a temporary waiver until January 19 and has indicated that it is seeking additional waivers and other funding alternatives. .

Shares of SunPower Corp. (SPWR) plunged more than 30% as the solar energy equipment and services provider warned it may not be able to stay in business after failing to repay its debt.

The company said it violated a credit agreement when it failed to report its third-quarter financial results on time, and creditors could demand immediate payment of the $65.3 million owed.

This would mean that SunPower “would not have sufficient liquidity to meet its obligations and pay its debts arising from normal business operations as they become due.” According to the solar company, if this happened, “there would be substantial doubts about the company's ability to continue as a going concern.”

SunPower said it received a temporary waiver from its creditors earlier this month, allowing it to suspend compliance with its covenants until Jan. 19, 2024. It said management was “seeking additional waivers and was evaluating various financing alternatives. to raise liquidity and meet its liquidity needs.

In October, SunPower announced that it would restate financial results for 2022 and the first and second quarters of this year due to issues with how its inventory was valued.

SunPower shares climbed Friday after Jefferies initiated coverage on the stock with a “hold” rating. With Monday's reversal, the stock has lost about three-quarters of its value this year.


Like this post? Please share to your friends:
Leave a Reply