Sunnova Stock Hits Record Low on Report Solar Firm Could File for Bankruptcy

Key Takeaways

• Sunnova Energy International, according to reports, is looking to restructure debts and may even file for bankruptcy protection.
• The Wall Street Journal reported the large manufacturer of residential panels is gathering financial data to begin negotiations with creditor.
• Earlier this week, founder and longtime CEO William "John" Berger resigned as Sunnova's financial struggles grew.

Sunnova Energy International, Inc. (NOVA) hit a new low after the news that it is restructuring its debt and could declare bankruptcy.

The Wall Street Journal reported on the company’s preparations to meet with its creditors to explore options to reduce $8.5 billion of debt. The paper also said that this could happen whether the company is in bankruptcy protection or not.

The Journal cited people familiar with the situation to report that Sunnova is working closely with Baker Botts, a law firm, and JPMorgan, an investment bank to gather the financial information necessary to begin discussions with bondholders and lenders about reducing debt and addressing bond maturities in the near future. 

It explained that Sunnova's most immediate concern was dealing with almost $1 billion worth of bonds and convertible notes due in 2026.

Longtime CEO Steps Down Monday

The news came just three days after the company named Paul Mathews to be its new CEO, taking over immediately for founder and longtime CEO William "John" Berger, who stepped down amid Sunnova's financial woes.

When contacted by Investopedia to discuss the report, a Sunnova spokesperson had no comment.

Sunnova Energy International’s shares plummeted by 24% in the late morning trading. In the last 12 months, they have lost 94% of their original value.