Southern California residential solar provider Verengo Inc., which says it has installed over 20,000 systems since 2008, has entered Chapter 11 bankruptcy proceedings in connection with the proposed sale of its business.
In a press release, the installer says it plans to sell substantially all of its assets to Crius Solar Fulfillment LLC, a subsidiary of Crius Energy Corp. and an affiliate of Crius Energ LLC, an energy solutions company that provides electricity, natural gas and solar products to residential and commercial customers.
Verengo intends to implement the transaction as an asset sale under Section 363 of the U.S. Bankruptcy Code. Verengo has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate the process, which the company says will provide for an orderly sale of its assets in a court-supervised environment. In conjunction with the proposed transaction, Crius has committed to provide Verengo with debtor-in-possession financing to support the company’s continued operations during the sale process. In addition, Verengo has filed a number of customary motions to facilitate ongoing operations, and the company says operations and services for Verengo customers will continue without interruption.
According to the installer, the combination with Crius is expected to strengthen Verengo’s capabilities in the California residential solar energy segment and provide an expansion platform outside of California.
“The acquisition by Crius provides Verengo with access to an exceptional customer platform, reliable infrastructure and capital that position us to grow from our standing as a premier California residential solar provider to an industry leader nationwide,” said Dan Squiller, CEO of Verengo. “As the solar industry continues to consolidate, the scale and resources that Crius brings to Verengo will increase our reach to new customers and strengthen our ability to serve our existing customers well into the future.”
“Crius is pleased to make this initial bid to facilitate an orderly transition that will enable Verengo to achieve its full potential, strengthen the company’s balance sheet and support its customers without interruption,” stated Michael Fallquist, CEO of Crius Energy. ”
Closing of the transaction is subject to customary conditions, including approvals required by the Verengo Chapter 11 bankruptcy process. The sale will be subject to other bids that may be received.