The bankruptcy saga of Verengo Solar’s assets, set in motion in September, moved one step closer to resolution this week.
On Sept. 23, Verengo shocked some industry analysts by filing for Chapter 11 bankruptcy protection after defaulting on a bank loan and announced it had a suitor: Crius Energy. Before the nearly $12 million sale could go forward, however, Verengo had to solicit other offers.
More than 20,000 installed solar systems, which once made Verengo the third-largest solar installer in California, were set to go to auction today if it had received a second bid for them.
But when the deadline passed on Nov. 28 without a second bid proffered, Verengo filed a motion with the U.S. Bankruptcy Court, District of Delaware, asking for permission to proceed with the sale to Crius.
If the court officially approves the sale at a Dec. 13 hearing, Crius Energy will reportedly pay $12 million for all the installed assets, with an immediate infusion of $2.25 million to pay off a portion of Verengo’s debt.
Crius Energy provides electricity, natural gas and solar products to over 900,000 residential and commercial customers across the United States.
While Crius already has a small solar portfolio, the volume of Verengo’s assets mark a significant investment in solar assets for the company. If Crius follows its own historical precedent, it will keep the Verengo Solar brand separate from its other solar holdings and promote it as another Crius Energy brand.
The sale is not expected to affect Verengo’s current customers, and Verengo hopes to focus on its key business goals, which include expanding its marketshare in California as well as expand its reach nationwide.