Freedom Forever: $155M Capital Stack, Texas AG Probe

Freedom Forever LLC, the second-largest U.S. residential solar installer in 2025, filed for chapter 11 bankruptcy on April 15, 2026 in the U.S. Bankruptcy Court for the District of Delaware (lead case 26-10522, Judge Brendan L. Shannon), listing estimated assets of $100 million to $500 million against estimated liabilities of $500 million to $1 billion. The petition came nine business days after the Texas Attorney General named Freedom Forever in a fraud initiative targeting deceptive sales practices in residential solar.

By early June 2026, the case had moved from the balance-sheet reorganization framing of its first-day papers onto a court-approved sale-or-plan path. The Final Cash Collateral Order, entered June 1, 2026, authorizes continued consensual use of SolarEdge and Tesla cash collateral and embeds a milestone schedule running from a July 15, 2026 bid-procedures deadline through a potential December 7, 2026 plan effective date. The court has also appointed an official committee of unsecured creditors, approved finance-partner settlements with GoodLeap and EnFin Corp., and is managing two WARN Act adversary proceedings tied to a petition-date layoff of approximately 1,600 employees. Kroll Restructuring Administration LLC serves as claims and noticing agent.

Debtor	Freedom Forever LLC (jointly administered affiliated debtors)
Case Number	26-10522 (BLS)
Court	U.S. Bankruptcy Court, District of Delaware
Judge	Hon. Brendan L. Shannon
Petition Date	April 15, 2026
Estimated Assets	$100 million -- $500 million
Estimated Liabilities	$500 million -- $1 billion
Funded Debt and Trade (per supplemental decl.)	~$155.1 million
First Lien Holder	SolarEdge Technologies, Inc. (~$105.7M)
Mosaic Funding Consumer-Finance Exposure (per press)	~$114 million
Cash Collateral Posture	No new-money DIP; Final Cash Collateral Order (June 1, 2026); 13-week budget ~$42.1M
Case Posture	Sale-or-plan toggle; milestones July–December 2026
Finance-Partner Settlements	GoodLeap (~$1.5M); EnFin Corp. ($500K upfront)
WARN Adversaries	2 class actions tied to ~1,600-employee layoff
Creditors' Committee	Appointed May 1, 2026
§ 341 Meeting	May 21, 2026, 2:00 p.m. (Zoom)
Founded	2011
Employees	3,600+
2025 Market Share	6.1% (#2 U.S. residential installer per Wood Mackenzie)

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Freedom Forever

What are the key takeaways from “Freedom Forever: $155M Capital Stack, Texas AG Probe”?

Wood Mackenzie's #2 Residential Solar Installer

Freedom Forever was founded in 2011 and grew into the second-largest U.S. residential solar installer by the time of the petition, installing nearly 2 GW of residential solar across 35 states, Puerto Rico, and Washington, D.C. The company employs more than 3,600 people and was ranked the top residential contractor on the 2025 Top Solar Contractors List measured by kilowatts installed.

Wood Mackenzie's energy analytics estimated Freedom Forever's 2025 nationwide market share at 6.1%, placing it second behind Sunrun, Inc. (12.7% share). The two companies have historically used different operating models — Sunrun favors a third-party-ownership lease/PPA model financed through asset-backed securitizations, while Freedom Forever operated as a more traditional installation contractor relying on consumer loan products from third-party finance companies including Mosaic, GoodLeap, and others.

SolarEdge First Lien and the $155 Million Capital Stack

The capital structure disclosed in the Supplemental Bouchy Declaration is dominated by SolarEdge, not by the consumer-finance counterparties that drew most early press attention. SolarEdge holds approximately $105.7 million in first-priority secured exposure across two instruments. Roughly $50.0 million is outstanding under a "New Credit Line" — a revolving facility committed up to $80 million — and approximately $55,691,192.56 is outstanding under "Products Debt" tied to unpaid inverters, optimizers, and related equipment. Both tranches mature December 31, 2026 and are secured by a first-priority interest in substantially all of the debtor's assets and in the assets of certain non-debtor affiliates, governed by the SolarEdge Repayment Agreement and its 2026 Repayment Program.

Tesla, Inc. is the next-largest secured creditor at approximately $23.0 million, comprising the original Tesla line of credit, a $5 million Amendment No. 10 facility, and an additional $6.25 million line. Tesla's position is governed by the Tesla Master Services Agreement / Certified Installer Agreement together with a Tesla Forbearance Agreement that extends Tesla's forbearance through December 31, 2026, subject to specified conditions including "Purchase Commitment Shortfall Liquidated Damages" exposure if Freedom Forever fails to submit conforming purchase orders. Tesla's collateral package is junior to SolarEdge and consists of a lien on Powerwalls and panel inventory plus a lien on accounts receivable and payment streams from Powerwall sales and "specific solar installation projects."

A material gap on the Tesla side is documented in the same declaration: as of the petition date, no fully executed deposit account control agreement was in place in favor of Tesla — or any other party — on the debtor's bank accounts.

EnFin Corp., a subsidiary of Hanwha Q CELLS America, holds an approximately $2.4 million claim arising from a March 2026 advance payment, with an asserted floating lien on solar modules, inverters, and equipment that is junior to any prior perfected lien. Trade creditors — including SolarEdge, Tesla, and various equipment and services counterparties — account for approximately $24.0 million of generally unsecured exposure. Consolidated Electrical Distributors, Inc. asserts a $385,974.10 secured claim based on a UCC-1 on file, but the supplemental declaration reports that the debtor has not located a corresponding security agreement and disputes the asserted secured status.

Creditor	Obligation	Amount	Maturity	Priority
SolarEdge Technologies	New Credit Line (up to $80M committed)	~$50.0M	Dec. 31, 2026	First-priority on substantially all assets
SolarEdge Technologies	Products Debt	~$55.7M	Dec. 31, 2026	First-priority (same package)
Tesla, Inc.	Original line + $5M Amendment No. 10 + $6.25M further line	~$23.0M	Dec. 31, 2026 (forbearance)	Lien on Powerwalls, panel inventory, AR streams; junior to SolarEdge
EnFin Corp. (Hanwha Q CELLS)	March 2026 advance payment	~$2.4M	May 31, 2026	Asserted floating lien, junior to prior perfected liens
Trade creditors	Various	~$24.0M	Various	Unsecured
Consolidated Electrical Distributors	UCC-1 on file	$0.39M	n/a	Asserted secured; disputed
Total		~$155.1M

Beyond funded debt, Freedom Forever's relationships with consumer-finance counterparties — Mosaic Funding and GoodLeap, LLC — sit outside the corporate capital stack but represent material additional exposure. The largest single consumer-finance number disclosed in trade press is the approximately $114 million owed to Mosaic Funding, which provides point-of-sale loans to residential solar customers; in Freedom Forever's installation model, those loans typically funded the customer's system purchase with proceeds flowing to the installer upon installation milestones. The five Mosaic Funding entities — Mosaic Funding I, V, VI, VII, and IX — appeared via an amended notice of appearance on April 27, 2026 through Morgan Lewis (Aaron Colodny, admitted pro hac vice) and Rosner Law Group, but no Mosaic-specific motion or stipulation has been filed as of the docket cut-off. GoodLeap is addressed through the post-petition Rule 9019 settlement described below.

Solar panel and balance-of-system manufacturers form the next layer of trade-creditor exposure. The company's filings list amounts owed to PT. IDN Solar Tech, JA Solar, Trina Solar, Silfab Solar, and Unirac, among others.

After the filing, SolarEdge Technologies (NASDAQ: SEDG) shares fell 12.7% following analyst downgrades, and Bank of America flagged negative implications for component suppliers.

Cash Collateral, Replacement Liens, and the Sale-or-Plan Toggle

Freedom Forever's case is a cash-collateral case, not a DIP loan case. No new-money DIP facility has been filed. Instead, the debtor sought authority to use the cash collateral of its prepetition first-priority lenders — SolarEdge and Tesla, defined together in the order as the "Consenting Parties" — to fund operations and preserve going-concern value through the Cash Collateral Motion filed April 23, 2026.

The court entered the Interim Cash Collateral Order on April 24, 2026, authorizing cash collateral use from the petition date through the Termination Date for weeks 1 through 4 of an approved 13-week budget. The interim order grants the Consenting Parties replacement liens on all now-owned and after-acquired property — excluding chapter 5 causes of action — to the same extent and priority as their prepetition liens, plus § 503(b) and § 507(b) superpriority administrative claims senior to all other administrative claims but junior to the Carve Out. Tesla's superpriority claim is explicitly junior to SolarEdge's. A revised proposed interim order was circulated on April 24 immediately before entry, reflecting negotiated changes between the debtor and the Consenting Parties.

The 13-week budget appended to the interim order contemplates approximately $42.1 million of total disbursements across the period. Approved weekly totals step up from approximately $1.7 million in week 1 (April 19–25, 2026) to $2.8 million in week 2, $3.3 million in week 3, and $3.0 million in week 4. The debtor must deliver an updated 13-week budget every other Tuesday and submit weekly reports — including variance reports and accounts receivable aging that distinguishes SolarEdge from Tesla projects — by the fourth business day of each week. Variance Testing is rolling three-week (initial two-week) starting May 7, 2026 and every third week thereafter, with a 15% Permitted Variance allowed on aggregate disbursements.

The Carve Out provisions in the interim order subordinate the Consenting Parties' liens and superpriority claims to (i) statutory U.S. Trustee and Clerk fees and (ii) accrued and unpaid debtor and committee professional fees. After an Event of Default and a five-day notice period, the carve-out for professional fees incurred thereafter is capped at $100,000. Up to $25,000 of cash collateral may be used by estate professionals to investigate the Consenting Parties' liens and claims. Events of Default include material non-compliance with the order or budget (subject to the 15% variance), reversal or modification of the interim order, and any pleading by the debtor challenging or encouraging a challenge to the Consenting Parties' prepetition liens. Cash collateral use automatically terminates on appointment of a chapter 11 trustee or examiner or conversion to chapter 7.

The court entered the Final Cash Collateral Order on June 1, 2026, carrying forward the replacement-lien and superpriority structure of the interim order, with Tesla's superpriority claim junior to SolarEdge's. The final order authorizes the debtors to pay the prepetition secured parties' professional fees — including those of SolarEdge's counsel, DLA Piper LLP — subject to a $30,000 weekly budget for each of SolarEdge and Tesla, and it retains the 13-week budget, every-other-Tuesday updates, variance reports, and accounts-receivable aging that separates SolarEdge from Tesla projects, with the 15% Permitted Variance preserved.

The most consequential change in the final order is a sale-or-plan milestone schedule that recasts the case from the going-concern reorganization described in the first-day papers into a marketing-and-sale process with a plan fallback. The Final Cash Collateral Order requires a bid- and sale-procedures motion to be approved by July 15, 2026, sets a bid deadline of August 5, 2026, an auction completed by August 12, 2026, and either a sale-approval order or the filing of a plan and disclosure statement by August 26, 2026. On the sale track, the debtors must consummate a sale by September 11, 2026; on the plan track, disclosure-statement approval is targeted for October 11, 2026, plan confirmation for November 20, 2026, and a plan effective date of December 7, 2026.

Consistent with that asset-monetization posture, the debtors sought authority for a de minimis asset sale procedure permitting individual asset sales above a $75,000 purchase-price threshold without separate court approval for each transaction.

GoodLeap and EnFin Settlements and the Sealing Objection

The GoodLeap Rule 9019 settlement is the case's first approved post-petition transaction. It appears across three filings: a sealed Rule 9019 motion, a redacted version of the motion, and a motion to seal the settlement agreement. GoodLeap is represented by Kirkland & Ellis LLP, with Margaret Reiney and Ciara Foster admitted pro hac vice on April 24, 2026.

Under the settlement, GoodLeap guarantees that at least $1.5 million will be funded to the estate on a rolling basis as identified Third-Party Owned ("TPO") Projects achieve "Milestone 2." GoodLeap will also pay certain of the debtor's subcontractors and lien claimants directly on the TPO Projects, with any remaining balances offset against amounts owed to the debtor. The redacted motion describes a parallel access framework: the debtor must give GoodLeap access to its project-management systems, design platforms, permitting and interconnection portals, and document repositories for the TPO Projects, and both sides commit dedicated personnel to administering the program.

The settlement also establishes a mechanism letting GoodLeap assume responsibility for "Aged Projects" that fail to reach "Permission to Operate" by specified deadlines, with an alternative "Loan" structure available for certain consumer projects. Mutual releases are limited in scope: they cover only claims arising from or related specifically to GoodLeap TPO Projects that achieve "Permission to Operate," and they do not affect third-party claims or non-TPO projects.

The court entered the Interim Order Approving the Settlement on April 24, 2026, with a combined final hearing on the 9019 motion, the seal motion, and the redacted settlement set for May 14, 2026. The interim order also authorizes the debtor to issue a "Letter of Authorization" allowing GoodLeap to communicate and act on the contractor's behalf with authorities, utilities, and third parties on the TPO Projects, while the mutual releases do not take effect until entry of a final order.

The U.S. Trustee objected to sealing and approving the GoodLeap settlement. The UST objection argued that the debtor had not met the burden under 11 U.S.C. § 107(b) and Bankruptcy Rule 9018 to shield the settlement consideration, transferred assets, and mutual releases from public view, that the redacted public version was "devoid of any meaningful information" and left creditors unable to assess the debtor's business judgment under Rule 9019, and that while the debtor disclosed the $1.5 million guarantee it did not disclose the value flowing to GoodLeap — access to project-management systems, design platforms, proprietary portals, and committed manpower.

The debtor reached a second finance-partner settlement with EnFin Corp., the Hanwha Q CELLS subsidiary whose withheld advances the supplemental Bouchy declaration had identified as a flashpoint. Under the EnFin settlement order entered June 1, 2026, EnFin must make a $500,000 initial upfront payment to the debtors within one business day of the interim order, with an allowed administrative claim for that amount if no final order is entered, and may act on the debtors' behalf on designated "EnFin Work Orders." A final hearing on the EnFin settlement was set for June 18, 2026. The Mosaic Funding entities, which hold the largest disclosed consumer-finance exposure, had not filed a comparable settlement or stipulation as of the docket cut-off.

WARN Adversaries and the Merchants Fleet Stay-Relief Motion

Two WARN Act class-action adversary proceedings were filed within the first week of the case, each tied to a pre-petition mass termination on or about April 15, 2026 that allegedly affected approximately 1,600 employees, including at the company's Las Vegas facility at 6569 South Las Vegas Boulevard.

The Quinones complaint (Adv. Pro. 26-50237), filed April 22, 2026 by Jacob Quinones and Jose Quinones, asserts a federal WARN Act claim under 29 U.S.C. § 2101 et seq. and seeks 60 days of wages, salary, commissions, bonuses, accrued holiday and vacation pay, 401(k) and pension contributions, and ERISA welfare benefits including health and medical insurance. The complaint references both the Las Vegas facility and "other facilities" collectively.

The Kelley complaint (Adv. Pro. 26-50238), filed April 23, 2026 by Prophett Kelley, layers a Nevada state-law theory on top of the federal WARN claim. It seeks penalties for failure to pay wages on discharge under NRS 608.040 and "similar state wage laws," accrued paid leave, and attorneys' fees. The Kelley complaint also expressly asks the court to treat the WARN claims as first-priority administrative-expense claims under § 503(b)(1)(A), a treatment that would rank ahead of general unsecured claims. Neither complaint has yet drawn a docketed responsive pleading from the debtor; both adversary proceedings remain pending alongside the cash collateral and 9019 final hearings.

Merchants Fleet stay relief. Principle Merchants Leasing, Ltd. and Merchants Automotive Group, LLC (collectively, "Merchants Fleet") filed a Motion for Relief From the Automatic Stay on April 24, 2026. The motion targets approximately 1,034 vehicles — roughly 1,000 under a Vehicle Lease dated July 10, 2020 and approximately 34 under a Mobility Lease dated January 10, 2022.

Merchants Fleet alleges $5,034,196 of outstanding pre-petition rent under the Vehicle Lease and $149,907 under the Mobility Lease, representing February, March, and April 2026 invoices. The motion asserts cause for stay relief under § 362(d)(1) (lack of adequate protection / default) and § 362(d)(2), arguing on the latter that the debtor has no equity in the vehicles and that they are not necessary for an effective reorganization on the asserted premise that the debtor is liquidating, not reorganizing. The Supplemental Bouchy Declaration describes the chapter 11 as an effort to "restore the financial foundation necessary to continue operations" rather than a § 363 sale process.

Merchants Fleet seeks adequate protection in the form of reimbursement-style rent payments and ongoing insurance, plus a cooperation order facilitating repossession (vehicle locations and access). The court entered an order shortening notice on April 28, 2026, accelerating the Merchants Fleet motion onto a faster track, and a notice of hearing was filed the same day. Merchants Fleet is represented by Wagner, Falconer & Judd, Ltd. (Nathan B. Serr, admitted pro hac vice). The approximately 1,034 vehicles support the Independent Authorized Dealer ("IAD") network used in Freedom Forever's installation model. The court resolved the Merchants Fleet motion by an agreed order entered May 12, 2026. A separate stay-relief motion by Qii Wii Goods, Inc., doing business as My IT CoPilot, sought relief with respect to software licenses.

Texas AG Probe and OBBBA Tax-Credit Termination

On April 6, 2026 — nine business days before Freedom Forever filed — Texas Attorney General Ken Paxton announced a fraud initiative targeting companies selling residential solar systems. As part of the initiative, Paxton issued Civil Investigative Demands ("CIDs") to four installers: Freedom Forever, LLC (also doing business as "Freedom Solar"), Sunrun, Inc., Lone Star Solar Services LLC, and CAM Solar Inc.

The Texas AG's office stated that the four targets are collectively the subject of more than 100 complaints filed with the AG's office, plus thousands more online, primarily under the Texas Deceptive Trade Practices–Consumer Protection Act. The CIDs require the companies to disclose documents covering how they track changes to electricity bills used to substantiate savings claims, warranty terms, and service plans. The conduct under investigation includes alleged misrepresentations about consumer energy-bill savings, equipment efficacy, installation quality, and contract terms.

The Civil Investigative Demand identifies Freedom Forever under the Freedom Solar name. The investigation followed years of consumer complaints alleging that solar contractors used aggressive door-to-door sales tactics and inflated savings projections to push customers into long-term financing contracts. The supplemental Bouchy declaration filed in the chapter 11 does not discuss the Texas AG investigation.

Causes cited in the supplemental declaration. The Supplemental Bouchy Declaration attributes the chapter 11 filing to a convergence of policy reversals and finance-partner payment defaults rather than a single trigger. Brett Bouchy, the Chief Executive Officer who signed the petition and the supplemental declaration, identifies four overlapping pressures.

The first is the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, which terminated the 30% Section 25D Residential Clean Energy Credit effective December 31, 2025. The declaration treats the abrupt elimination of the residential investment tax credit as the single largest demand shock, materially reducing consumer demand and triggering widespread project cancellations. New restrictions on the Section 48E Investment Tax Credit further increased compliance uncertainty and caused institutional tax-equity investors to pull back. Executive Order 14154, issued in January 2025, paused IRA-related disbursements with what the declaration calls an "immediate chilling effect" on tax-equity markets, and Executive Order 14315 (July 2025) directed Treasury to "strictly enforce" the termination of solar tax credits.

The second is finance-partner conduct. The declaration identifies material payment delays, withheld advances, and disputed milestone claims by EnFin Corp. and GoodLeap as creating a "negative feedback loop" in which late funding to Freedom Forever cascaded into late IAD payments, which drove dealer attrition and a sharp drop in originations. EnFin's behavior is described as a particular flashpoint. The post-petition GoodLeap settlement is in part a response to that pre-petition tension, recasting the GoodLeap relationship into a court-supervised funding mechanism tied to TPO Project milestones.

The third is the rate and tariff environment. The declaration cites the 5.25–5.5% benchmark rate environment as compressing both homeowner monthly payments and the company's own borrowing costs, plus tariffs on solar components and broader supply-chain uncertainty that raised installation costs and extended project timelines. The fourth is California's 2023 Net Energy Metering 3.0 reforms, which reduced compensation for excess electricity in what had been a flagship market for the company.

Pre-petition, the debtor implemented workforce reductions, terminated or renegotiated non-critical vendor contracts, consolidated its physical footprint, and prioritized payments to its highest-producing IADs. It also engaged secured lenders and finance partners in restructuring discussions and retained restructuring counsel and financial advisors. The chapter 11 filing followed the conclusion that those measures alone could not bridge the liquidity gap.

Solar Industry Distress and Customer Warranty Exposure

Freedom Forever follows recent chapter 11 filings by other large U.S. residential solar companies. Cases involving Sunnova, SunPower, and Lumio largely resulted in liquidation rather than reorganization, despite the chapter 11 designation, during a period of resetting state and federal solar incentives and tighter consumer-finance margins.

Customer warranty exposure. Workmanship warranties — which typically cover installation defects for 10 years or more — are debtor obligations subject to plan treatment in a chapter 11 case. Customers with unfinished installations have faced project delays and service uncertainty since the petition date. Equipment manufacturer warranties for panels and inverters generally remain enforceable directly against the manufacturer regardless of the installer's bankruptcy status.

Professionals, Creditors' Committee, and Claims Agent

Morris, Nichols, Arsht & Tunnell LLP (Andrew R. Mueller) serves as the debtors' proposed bankruptcy counsel. The debtors also retained Berkeley Research Group, LLC as financial advisor and Holland & Hart LLP as special counsel, with a separate special-conflicts-counsel retention also on file.

An official committee of unsecured creditors was appointed May 1, 2026; its retention applications name Blank Rome LLP as counsel and Dundon Advisers LLC as financial advisor. The affiliated Freedom Forever debtor entities were ordered jointly administered under the lead case on May 11, 2026.

Kroll Restructuring Administration LLC was retained as claims and noticing agent under § 156(c) authority on April 24, 2026, with an order entered the same day. The Kroll application emphasizes a competitive selection process against at least two other claims-agent firms; engagement-letter rates are filed as Exhibit C. The application's noticing forecast — "more than 200 parties" — is narrower than the 50,000–100,000 creditors listed in the voluntary petition.

The debtor obtained an extension of the deadline to file its schedules and statements; the schedules of assets and liabilities and the statement of financial affairs were filed under seal in early June 2026.

Other constituency counsel of record include DLA Piper LLP (US) for SolarEdge (C. Kevin Kobbe, pro hac vice), Buchalter LLP for Hanwha Q CELLS / EnFin Corp. (Caroline Djang, pro hac vice), and Morgan Lewis with Rosner Law Group for the Mosaic Funding entities. Notices of appearance have also been filed by GoodLeap, JA Solar USA, Aurora Solar, Sonepar National Accounts, Wesco Distribution, and NextEra Energy Services, among others.

A Notice of Reclamation of Claim was filed April 30, 2026 by K2 Systems LLC, asserting a § 546(c) reclamation right with respect to goods delivered to the debtor pre-petition. The reclamation notice is preliminary; no related motion or stipulation has yet been filed.

Key Timeline

Date	Event
2011	Freedom Forever founded
2025	Ranked #2 U.S. residential solar installer by Wood Mackenzie (6.1% market share); top contractor on 2025 Top Solar Contractors List
April 3, 2026	Texas AG announces investigation into solar industry fraud
April 6, 2026	Texas AG Paxton issues Civil Investigative Demand to Freedom Forever, Sunrun, Lone Star Solar Services, and CAM Solar
April 15, 2026	Petition Date — Freedom Forever LLC files chapter 11 (D. Del. case 26-10522 BLS); approximately 1,600 employees terminated on or about the same day; Bank of America downgrades SolarEdge (SEDG); SEDG shares fall 12.7%
April 17, 2026	First day hearing held
April 22, 2026	Quinones WARN adversary filed (Adv. Pro. 26-50237)
April 23, 2026	Cash collateral motion, supplemental Bouchy declaration, sealed and redacted 9019 GoodLeap motions, motion to seal, Kroll claims-agent application, supplemental wages motion, and Kelley WARN adversary filed
April 24, 2026	Omnibus hearing; entry of supplemental interim wages order, interim cash collateral order, order authorizing Kroll, and interim 9019 settlement order; Merchants Fleet stay-relief motion filed
April 27, 2026	Mosaic Funding amended notice of appearance; combined notice of hearing on GoodLeap settlement
April 28, 2026	Order shortening time on Merchants Fleet motion; notice of hearing on Merchants Fleet motion
April 29, 2026	Motion to extend deadline to file schedules and statements
April 30, 2026	K2 Systems reclamation notice
May 1, 2026	Official committee of unsecured creditors appointed
May 7, 2026	U.S. Trustee objects to GoodLeap seal and settlement motions
May 11, 2026	Joint administration ordered; BRG, Kroll, and Holland & Hart retentions filed
May 12, 2026	Agreed order resolves Merchants Fleet stay relief
May 21, 2026 at 2:00 p.m. ET	§ 341 meeting of creditors (Zoom)
June 1, 2026	Final Cash Collateral Order entered with sale-or-plan milestones; EnFin settlement order entered
June 18, 2026	EnFin settlement final hearing (scheduled)
July 15, 2026	Bid- and sale-procedures motion deadline
August 5, 2026	Bid deadline
August 12, 2026	Auction completed
August 26, 2026	Sale-approval order or plan and disclosure statement filing
September 11, 2026	Sale consummation (sale track)
November 20, 2026	Plan confirmation (plan track)
December 7, 2026	Plan effective date (plan track)
December 31, 2026	Stated maturity for SolarEdge facilities; Tesla forbearance period

Frequently Asked Questions

When did Freedom Forever file for bankruptcy?

Freedom Forever LLC filed for chapter 11 bankruptcy on April 15, 2026, in the U.S. Bankruptcy Court for the District of Delaware (case number 26-10522). The petition listed estimated assets of $100 million to $500 million and estimated liabilities of $500 million to $1 billion.

Did Freedom Forever obtain a DIP loan?

No. The case is a cash-collateral case, not a DIP loan case. The court entered an interim cash collateral order on April 24, 2026 and a final cash collateral order on June 1, 2026 authorizing Freedom Forever to use the cash collateral of its prepetition first-priority lenders, SolarEdge Technologies and Tesla, against a 13-week budget contemplating approximately $42.1 million of total disbursements. The final order also set a sale-or-plan milestone schedule running from July through December 2026.

Who is the largest secured creditor?

SolarEdge Technologies, Inc. holds approximately $105.7 million in first-priority secured exposure across a "New Credit Line" (about $50.0 million outstanding) and "Products Debt" (approximately $55.7 million). Tesla, Inc. is the second-largest secured creditor at approximately $23.0 million, junior to SolarEdge. The largest disclosed consumer-finance counterparty exposure is to Mosaic Funding at approximately $114 million per trade press, sitting outside the corporate funded debt stack.

What does the GoodLeap settlement do?

The Rule 9019 settlement, approved on an interim basis on April 24, 2026, guarantees that at least $1.5 million will be funded to the estate as identified TPO Projects achieve "Milestone 2," establishes direct subcontractor and lien-claimant payments by GoodLeap on TPO Projects, and creates a mechanism for GoodLeap to assume responsibility for "Aged Projects" that miss specified deadlines. Mutual releases are limited to TPO Projects that reach "Permission to Operate." The U.S. Trustee objected to sealing the settlement, and the debtor separately settled with finance partner EnFin Corp. for a $500,000 upfront payment under an order entered June 1, 2026.

How many WARN claimants are involved?

Two adversary proceedings (Adv. Pro. 26-50237 and 26-50238) are pending on behalf of an alleged class of approximately 1,600 employees terminated on or about the April 15, 2026 petition date. The Kelley complaint expressly seeks first-priority administrative-expense treatment under § 503(b)(1)(A); the Quinones complaint seeks federal WARN damages without an administrative-priority demand.

Is Freedom Forever reorganizing or selling its business?

The first-day papers described a balance-sheet reorganization, but the Final Cash Collateral Order entered June 1, 2026 set a sale-or-plan "toggle" schedule. It requires a bid- and sale-procedures motion by July 15, 2026, an auction by August 12, 2026, and either a sale-approval order or a plan and disclosure statement by August 26, 2026, with a sale consummation target of September 11, 2026 or a plan effective date of December 7, 2026.

Was Freedom Forever the largest residential solar installer in the U.S.?

Freedom Forever was the second-largest U.S. residential solar installer in 2025 by market share, with 6.1% of the U.S. residential market according to Wood Mackenzie, behind Sunrun (12.7%). It was the top contractor on the 2025 Top Solar Contractors List measured by kilowatts installed, with nearly 2 GW of residential solar installed across 35 states, Puerto Rico, and Washington, D.C.

What is the Texas Attorney General investigation?

On April 6, 2026, Texas Attorney General Ken Paxton issued Civil Investigative Demands to Freedom Forever (also doing business as "Freedom Solar"), Sunrun, Lone Star Solar Services, and CAM Solar as part of a major initiative against alleged fraud and deceptive sales practices in the residential solar industry. The four installers are the subject of more than 100 complaints filed with the AG's office under the Texas Deceptive Trade Practices–Consumer Protection Act, focused on misrepresentations about consumer energy-bill savings, equipment efficacy, and contract terms.

What does this mean for current customers?

Workmanship warranties (typically 10 years or longer) are debtor obligations subject to plan treatment in chapter 11. Equipment manufacturer warranties for solar panels and inverters generally remain enforceable directly against the manufacturer regardless of the installer's bankruptcy status. Consumer-finance obligations to Mosaic, GoodLeap, or other lenders are generally obligations of the homeowner under the financing contracts rather than of Freedom Forever, independent of any unresolved project-completion or workmanship dispute.

Who is the claims agent for Freedom Forever?

Kroll Restructuring Administration LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest under the order entered April 24, 2026.

How does Freedom Forever compare to Sunnova, SunPower, and Lumio?

Freedom Forever is the latest in a series of major U.S. residential solar bankruptcies that includes Sunnova, SunPower, and Lumio, each of which filed chapter 11 in the prior 18 months. Several of those earlier cases ultimately resulted in liquidation rather than going-concern reorganization despite the chapter 11 designation.

For more bankruptcy case coverage, visit the ElevenFlo bankruptcy blog.