Suniva secures final approval to use $5.2 million of DIP financing

By Caroline Salls

Pittsburgh, May 19 – Suniva, Inc. received final court approval to use $5.2 million of debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

SQN Asset Servicing, LLC is the DIP lender.

As part of the DIP financing agreement, Suniva will grant the lender warrants representing at least 40% of the outstanding shares of the company under a Chapter 11 plan and, if a successful determination is made in a trade case seeking U.S. government protection for the solar industry, a fee equal to 60% of the increase in the value of the stock and other equity interests in Suniva resulting from that determination.

Interest will accrue at a rate of 12%, to be paid in kind. If the borrower exercises an extension option, the rate will increase to 13%.

The facility will mature on Jan. 30, 2018, subject to an extension to April 30, 2018.

Suniva, a Norcross, Ga.-based manufacturer of high-efficiency crystalline silicon photovoltaic (PV) solar cells and high-power solar modules, filed bankruptcy on April 17. The Chapter 11 case number is 17-10837.

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