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Published August 13, 2024 at 7:04 p.m.
A federal bankruptcy judge cleared the way on Tuesday for the sale of the Williston solar installer iSun to a private energy investment firm for $10 million.
Clean Royalties, an affiliate of the Texas-based Siltstone Capital, was the only bidder at an auction in a federal bankruptcy court vying to purchase iSun after the Vermont company declared bankruptcy in June.
The proposed sale faced a slew of objections from the numerous companies to which iSun owes money. But after a flurry of closed-door dealmaking delayed a court hearing, the list of objections was whittled down to just a few, and a judge said he’s ready to sign off on the deal once they are resolved.
Exactly what the sale will mean for iSun’s operation is unclear. Siltstone Capital has not laid out any plans for the company and its assets, which were reported as $66.7 million in 2023.
“We believe that Clean Royalties is much better capitalized, with a better platform, and better situated, to continue serving [iSun’s] customers and business partners,” said Michael Busenkell, an attorney representing the Vermont company, at Tuesday’s hearing.
iSun is by far Vermont’s largest solar installer and among only a handful of the state’s publicly traded companies. Originally a family-owned electrical contractor known as Peck Electric, iSun went public in 2019 and, two years later, purchased Vermont residential solar installer SunCommon for $40 million.
The move brought millions in new investment capital and helped the company expand rapidly. But the growth did not translate to profits, and iSun posted losses of $73.2 million over 2022-2023. By the time it filed for bankruptcy protection, iSun was losing $250,000 per week and on the verge of shutting down.
The company’s problems may not be over. A whistleblower complaint made to the federal Securities and Exchange Commission has accused its leaders of misleading shareholders and engaging in “extensive” wrongdoing. And a bonding company has sued iSun CEO Jeffrey Peck personally, seeking to find him liable for millions in losses linked to fumbled industrial-scale projects.
Clean Royalties, an affiliate of the Texas-based Siltstone Capital, was the only bidder at an auction in a federal bankruptcy court vying to purchase iSun after the Vermont company declared bankruptcy in June.
The proposed sale faced a slew of objections from the numerous companies to which iSun owes money. But after a flurry of closed-door dealmaking delayed a court hearing, the list of objections was whittled down to just a few, and a judge said he’s ready to sign off on the deal once they are resolved.
Exactly what the sale will mean for iSun’s operation is unclear. Siltstone Capital has not laid out any plans for the company and its assets, which were reported as $66.7 million in 2023.
“We believe that Clean Royalties is much better capitalized, with a better platform, and better situated, to continue serving [iSun’s] customers and business partners,” said Michael Busenkell, an attorney representing the Vermont company, at Tuesday’s hearing.
iSun is by far Vermont’s largest solar installer and among only a handful of the state’s publicly traded companies. Originally a family-owned electrical contractor known as Peck Electric, iSun went public in 2019 and, two years later, purchased Vermont residential solar installer SunCommon for $40 million.
The move brought millions in new investment capital and helped the company expand rapidly. But the growth did not translate to profits, and iSun posted losses of $73.2 million over 2022-2023. By the time it filed for bankruptcy protection, iSun was losing $250,000 per week and on the verge of shutting down.
The company’s problems may not be over. A whistleblower complaint made to the federal Securities and Exchange Commission has accused its leaders of misleading shareholders and engaging in “extensive” wrongdoing. And a bonding company has sued iSun CEO Jeffrey Peck personally, seeking to find him liable for millions in losses linked to fumbled industrial-scale projects.
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About The Author
Colin Flanders
Bio:
Colin Flanders is a political reporter at Seven Days, covering the Statehouse. He previously worked as a reporter at a group of Chittenden County weekly newspapers covering Essex, Milton and Colchester.
Colin Flanders is a political reporter at Seven Days, covering the Statehouse. He previously worked as a reporter at a group of Chittenden County weekly newspapers covering Essex, Milton and Colchester.
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