Settlement With Creditors and Objections
A settlement with Mosaic’s unsecured creditors committee smoothed the way for approval. The company agreed to contribute an additional $2.5 million to the estate and subordinate some secured claims, allowing unsecured creditors to receive partial recoveries.
Still, the plan faced pushback. The U.S. Trustee’s Office objected to how creditor release opt-outs were counted, arguing that silence should not be treated as consent. Meanwhile, a coalition of state attorneys general raised concerns about inadequate notice and enforcement powers. Those objections were resolved after Mosaic agreed to exempt all 50 states and U.S. territories from the release provisions.
A Decade of Solar Lending Unravels
Founded in 2010, Mosaic once partnered with more than 2,000 solar installation contractors, issuing home improvement loans later sold to capital markets while retaining servicing rights. But industry headwinds—including looming Congressional cuts to solar tax credits—pushed the firm into insolvency, mirroring the collapse of several other solar companies this year.
Chief restructuring officer Mark A. Renzi testified that despite Mosaic’s once-booming business model, the broader downturn left the company with no choice but to restructure.
