Answers To Common Questions About Sungevity’s Chapter 11 Filing Process

 

Q:    What was announced?

  • Sungevity has voluntarily filed for Chapter 11 protection.
  • Sungevity has reached an agreement with a group of investors led by Northern Pacific Group on a balance sheet restructuring plan that will reduce its debt and give it more financial flexibility in this challenging environment.
  • Sungevity has entered into an asset purchase agreement led by Northern Pacific Group and this group of investors has committed to provide the company with financing to fund the day-to-day business.
  • For now, it is business as usual. A final sale approval hearing and closing of the sale is expected to take place by the end of April.
  • We expect the end result of this process to be very positive for Sungevity.

 

Q:    Where did Sungevity file?

  • The voluntary petitions were filed in the U.S. Bankruptcy Court for the district of Delaware.

 

Q:    What does it mean to file for Chapter 11 protection?

  • Chapter 11 is the section of the United States Bankruptcy Code that regulates corporate restructurings.
  • A Chapter 11 restructuring is a legal process designed to help companies continue to operate while they implement plans to restructure their finances. Chapter 11 permits, and even encourages, daily business operations to continue as usual.
  • Many companies have utilized Chapter 11 and have gone on to grow and prosper, including General Motors, American Airlines and Macy’s, to name just a few.

 

Q:    How will customers be affected?

  • We expect to conduct business in the ordinary course with all customers.
  • Our commitment to service is unwavering and we will continue providing our valued customers with the same products and quality of service they have come to expect from us.
  • We are currently working to address all specific customer inquiries and issues as quickly as possible and we appreciate your patience.

 

Q:    How will the filing affect day-to-day operations at Sungevity?

  • Our business will continue to operate as usual throughout the Chapter 11 process in the U.S. and everywhere else in the world. Sungevity is not shutting down any of its operations.
  • During this process, our team will remain committed to serving our customers and delivering our industry leading service.

 

Q:    What factors led to Sungevity’s current financial situation?

  • Sungevity has a substantial amount of debt, the payment of which has become difficult and a detriment to our day-to-day business operations.
  • We believe this restructuring plan represents the best path forward for Sungevity to strengthen its financial position and achieve future success.

 

Q:    What does Sungevity hope to accomplish through this Chapter 11 reorganization?

  • Sungevity’s goal is to strengthen its balance sheet and recapitalize the company.
  • An improved balance sheet will create a stronger and more sustainable Sungevity that is better positioned to compete.
  • We expect to emerge from this as a stronger and more competitive company.

 

Q:    How long will Sungevity be in Chapter 11?

  • While it is premature to speculate on an exact timeline, we currently believe that Sungevity can emerge from this process by the end of April 2017.

 

Q:    How can I get updates and additional information?

  • We will keep you informed by email and/or by U.S. Mail of any important events as this process moves forward.
  • If you have additional questions or concerns, please email CustomerService@Sungevity.com and one of representatives will contact you as soon as possible. We are responding to all customer inquiries.

 

Q:    Why should I continue to do business with Sungevity?

  • We will continue to conduct business and do everything we normally do to deliver service and value to our customers.
  • We value our relationship with you and look forward to maintaining it long into the future.
  • We expect to emerge from this as a stronger and more competitive company.

NON-U.S. SUNGEVITY CUSTOMERS

 

Q:    How will this announcement affect me?

  • The filing only affects the U.S. operations of Sungevity. Operations outside the U.S. are not included in the legal proceedings and are conducting business as usual, including honoring their contractual relationships and continuing to serve our valued customers.
  • Accordingly, this announcement will not affect your business relationship with Sungevity.

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