SunPower reports bankruptcy filings, cautions investors By Investing.com

SunPower (OTC:) Corp (NASDAQ:SPWR), a semiconductor and solar energy company, disclosed the filing of voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, according to an 8-K filing with the Securities and Exchange Commission (SEC) dated September 18, 2024.

The bankruptcy cases, filed by SunPower and its subsidiaries in the U.S. Bankruptcy Court for the District of Delaware, include a comprehensive statement of financial affairs and asset schedules. These documents are publicly accessible and provide details on the company’s legal matters, including ongoing lawsuits and investigations.

SunPower has issued a warning to its shareholders, advising that trading its common stock during the bankruptcy proceedings is highly speculative and carries significant risk. The company anticipates that equity holders may face a total loss of their investment, given the expected outcomes of the Chapter 11 process.

The 8-K filing also contains forward-looking statements regarding the potential impacts of the bankruptcy on SunPower’s operations and financial condition. The company acknowledges the possibility of increased legal and professional costs, the effect of court rulings, and the overall outcome of the Chapter 11 cases.

SunPower’s ability to secure court approvals, maintain liquidity, manage employee retention, and address the delisting of its common stock from Nasdaq are among the factors that could influence the restructuring process and the company’s future.

The cautionary note in the report highlights the inherent uncertainties in the bankruptcy process and advises that the actual results could differ materially from those projected in the forward-looking statements.

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