Lumio, a leader in personalized renewable energy, filed voluntary petitions for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware to complete a value-maximizing sale process and strengthen its financial position. The Company anticipates completing the sale process in less than two months. During the sale process, the Company’s operations will continue as usual without interruption.
Prior to its Chapter 11 filing, Lumio entered into a stalking horse asset purchase agreement (the “APA”) with an affiliate of White Oak Global Advisors, LLC (“White Oak”), the Company’s primary senior secured lender. By the APA, White Oak proposes to acquire substantially all of the Company’s assets for a total purchase price of approximately $100 million in the form of a credit bid. If selected as the successful bidder, White Oak also intends to offer significant equity ownership to the Company’s employees.
Lumio will continue its prepetition sale process through a Court-supervised process designed to elicit the highest or otherwise best bid for its assets in order to maximize value for all stakeholders. A sale transaction will provide certainty regarding the continuation of the business for employees, customers, and trade creditors whose claims will be assumed in the sale.
“Today’s announcement marks an important step forward for Lumio and a continuation of our deliberate efforts to position the business with the strategic, operational, and financial foundation to operate at the forefront of the solar industry as it enters its recovery phase,” said Andrew Walton, Chief Executive Officer at Lumio. “With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalize on growth opportunities and better serve our customers through every step of their switch to solar. As we complete our sale process, we are committed to continuing to deliver our industry leading solutions and an excellent experience to our customers across the country.”
Lumio has filed a number of customary “first day” motions which, upon approval by the Court, will enable the Company to continue its operations without disruption. The Company has also entered into an agreement with White Oak to receive $8 million of debtor-in-possession (“DIP”) financing which, following Court approval, is expected to support operations in the ordinary course as the Company completes its sale process.
Morris, Nichols, Arsht & Tunnell LLP is serving as legal advisors, Houlihan Lokey is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company.