💥New Chapter 11 Bankruptcy - iSun Inc. ($ISUN)💥

Solar energy services company looks towards a 363 process with a stalking horse bidder

On June 3, 2024, VT-based iSun Inc. ($ISUN) and eleven affiliates (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the District of Delaware (Judge Horan).

While they might say they’re a solar energy services and infrastructure deployment company, the debtors’ true specialty is bleeding cash. The debtors incurred net losses of $19.4mm and $53.8mm, and posted negative CFO of $8.9mm and $6.3mm for ‘23 and ‘22, respectively. Prior to the petition date, the debtors were operating at a deficit of $250k per week and forecasted a loss of $10mm for ‘24. The energy future, ladies and gentlemen!

In the midst of their financial troubles, the debtors engaged England Securities LLC in August ‘23 to help with strategic alternatives. Unfortunately, around the same time, a lender notified iSun of a covenant breach and England’s mandate quickly pivoted towards figuring out a way to cure. The debtors identified three “solutions”: