Sungevity gets interim bankruptcy court approval to access financing

By Caroline Salls

Pittsburgh, March 16 – Sungevity, Inc. received court approval to use a portion of a proposed $20 million in debtor-in-possession financing on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

A total of $10.75 million of the financing will be available on an interim basis, with a $5.75 million initial term loan to be drawn on the closing date.

Wilmington Trust, NA is the DIP agent.

Interest will accrue at a rate of 15%, payable in-kind.

The facility will mature on the earliest of 30 days after the bankruptcy filing date if the final order has not been entered, delivery of a default notice, conversion of the Chapter 11 cases, 45 days following the bankruptcy filing, the closing of a sale of the company’s assets, the effective date of a Chapter 11 plan, the filing of a plan that does not provide for payment of the DIP obligations in full in cash and termination of the commitments and acceleration of the outstanding amounts.

According to the order, the final hearing will be held in April.

Based in Oakland, Calif., Sungevity is a technology-driven solar energy company, which enables users to get a quote without a site visit. It services 13 U.S. states as well as the Netherlands, Germany and the United Kingdom. The company filed bankruptcy on March 13 under Chapter 11 case number 17-10561.

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