Residential solar panel provider Lumio Holdings filed for Chapter 11 bankruptcy protection in Delaware on Tuesday, citing debts ranging from $100 million to $500 million. The Utah-based company has also announced plans to sell all of its assets as part of its restructuring efforts.
Jeffrey T. Varsalone, Lumio’s chief restructuring officer, revealed in court documents that the company is saddled with significant debt but did not provide specific reasons for the bankruptcy filing. As part of its restructuring, Lumio has entered into a stalking horse agreement with LHX Home Services LLC, setting the stage for the sale of its assets. Additionally, the company has secured approximately $8 million in debtor-in-possession financing from White Oak Global Advisors LLC to maintain operations during the bankruptcy process.
Lumio Files Chapter 11 : Financial Overview and Major Creditors
According to court filings, Lumio has fewer than 50 creditors. The largest unsecured creditors include Slim Ventures LLC, which is owed about $5.5 million; Palmetto Solar LLC, owed $4.8 million; and Solar Mosaic LLC, owed $2.5 million. These claims highlight the financial challenges that led to Lumio’s Chapter 11 filing.
Next Steps in Lumio’s Restructuring
Lumio’s Chapter 11 filing indicates that the company is looking to sell its assets to satisfy its debts, with LHX Home Services LLC positioned as the potential buyer under the stalking horse agreement. This type of agreement often sets a baseline for other potential bids, ensuring that Lumio can maximize the value of its assets. The $8 million in financing from White Oak Global Advisors LLC will help Lumio continue operations during this critical period, providing a lifeline as the company navigates the bankruptcy process.
