In January 2013, Billy Parish and Daniel Rosen launched a clean energy finance platform. Their company, Solar Mosaic, offered everyday Americans the chance to invest as little as $25 in specific solar projects, earning 4.5% annual returns while funding community-scale installations across California. The first public offerings sold out in less than 24 hours, with over 400 investors committing $313,000.
Twelve years later, the company had grown into a large residential solar lender, funding over $15 billion in loans supporting more than 500,000 households. On June 6, 2025, Mosaic Sustainable Finance Corporation filed chapter 11 petitions in the Southern District of Texas amid elevated interest rates, policy uncertainty, and a 31% decline in installations during 2024. The case moved from petition to confirmation in 91 days and ended with a liquidating plan that transferred the company's loan servicing operations to Solar Servicing LLC, a wholly owned subsidiary of secured creditor Forbright Bank. The loan origination business was shut down.
Billy Parish and Daniel Rosen founded Solar Mosaic in 2010 as a crowdfunding platform that let retail investors fund community-scale solar installations. In 2014 the company pivoted to originating residential solar loans directly to homeowners, positioning itself as the intermediary between solar installers that needed customer financing and capital markets that wanted solar-backed consumer loan assets.
Billy Parish led Mosaic as CEO for 13 years before becoming Executive Chair in 2023, with Patrick Moore assuming the CEO role. When the company entered chapter 11, Mark A. Renzi of Berkeley Research Group was appointed Chief Restructuring Officer to oversee the wind-down.
Rate Squeeze, ITC Uncertainty, and Dealer-Fee Litigation
Interest Rates and Capital Markets Stress.
The business model that worked in a low-rate environment faced pressure as the Federal Reserve raised rates. Consumer solar loans depend on a spread between the cost of capital and the rates charged to borrowers. When warehouse facility costs rose, Mosaic's margins compressed.
In August 2024, Mosaic retained Rockefeller Capital Management to develop a recapitalization plan. The company subsequently engaged Jefferies LLC as investment banker to explore additional capital alternatives. The company pursued recapitalization efforts but did not secure new capital.
The uncertainty became reality on July 4, 2025—less than a month after Mosaic's bankruptcy filing—when the One Big Beautiful Bill Act (OBBBA) was signed into law. The legislation cut short many federal tax credits that the IRA had established. The Senate version terminated the 25D solar tax credit at midnight on December 31, 2025—accelerating the sunset by seven years from the original 2032 schedule.
Beyond the macroeconomic pressures, Mosaic faced consumer protection litigation.
Since 2019, lawsuits alleging fraudulent loans had demanded over $3 million from California consumers, with complaints centered on incomplete installations and non-functional systems. Mosaic served as the financing intermediary rather than the installer.
The consumer protection pressure escalated on March 8, 2024, when Minnesota Attorney General Keith Ellison filed suit against Mosaic and three other major solar lenders—GoodLeap, Sunlight Financial, and Dividend Solar. The lawsuit alleged deceptive hidden fees on more than 5,000 solar panel purchases in Minnesota, with hidden charges totaling $35 million and increasing borrower costs by 15-30%.
The Minnesota complaint detailed Mosaic's specific exposure: from 2019 to 2023, the company made at least $85.5 million in loans to 2,147 Minnesota consumers. The average upfront "dealer fee"—the charge that borrowers alleged was hidden—averaged 17.6% of each consumer's loan amount, or approximately $5,843 per borrower. Total upfront fees charged to Minnesota consumers exceeded $12.6 million over the period. Mosaic characterized the complaint as a mischaracterization of dealer fees, and the case was consolidated with similar lawsuits in federal court.
The consumer complaint history extended beyond the Minnesota litigation. Consumer Financial Protection Bureau data show nearly 160 complaints filed against Solar Mosaic since 2019. The distress was not confined to Mosaic: Sunlight Financial, one of the lenders named in the Minnesota suit, had filed its own chapter 11 in 2023.
Houston Filing, $113.6 Million Secured Debt, and Forbright's DIP
Petition and first day relief. On June 6, 2025, Mosaic Sustainable Finance Corporation and four affiliated debtors filed voluntary chapter 11 petitions in the Southern District of Texas. The cases were jointly administered under Case No. 25-90156 before the Hon. Christopher M. Lopez.
Capital structure. At filing, Mosaic carried a prepetition secured credit agreement with approximately $113.6 million in outstanding principal, with Forbright Bank as administrative agent for the lender group. The bankruptcy filings reported an asset and liability range of $1 billion to $10 billion, reflecting a loan portfolio that included securitized assets on which Mosaic retained servicing rights. Historical warehouse facilities had come from DZ Bank, NY Green Bank, and Deutsche Bank.
DIP financing terms. The debtors secured a $45 million DIP financing facility from existing prepetition lenders, with Forbright Bank serving as agent. The facility included $15 million in new money to fund operations during the restructuring process and facilitate completion of partially funded solar installations that were in progress at the filing date.
Strategic alternatives. The debtors proposed a dual-path strategy contemplating two outcomes: a debt-to-equity conversion that would reorganize the company under creditor ownership, or an asset sale that would transfer the operating business and distribute proceeds. The sale and bidding procedures motion was filed on the petition date, and the court entered a Bidding Procedures Order on July 2, 2025. Jefferies LLC marketed the loan servicing operations as investment banker, and as prepetition secured lender Forbright was positioned to credit bid its claim for the servicing operations.
Plan amendments. The debtors amended the plan four times before confirmation, moving from the original plan to the Fourth Amended Plan of Liquidation filed on September 3, 2025.
Plan structure and treatment. The Hon. Christopher M. Lopez confirmed the liquidating plan on September 5, 2025, 91 days after the petition. The core transaction transferred Solar Mosaic's loan servicing operations to Solar Servicing LLC, a wholly owned subsidiary of Forbright Bank, with the more than $8 billion in outstanding loans serviced through the new entity. Forbright satisfied its approximately $113.6 million secured position through the asset acquisition rather than cash distributions, and Olive Advisors, LLC (Jim Birmingham) was approved as Plan Administrator for the Wind-Down Debtors.
Effective date and closing. The plan went effective on September 22, 2025, with Solar Servicing LLC completing the acquisition on the same date, roughly two weeks after confirmation.
Borrower Disputes and Loan-Ownership Adversaries
Post-confirmation activity in the Mosaic case centers on borrowers, mortgage servicers, and loan ownership.
Relief from stay motions. Multiple mortgage servicers have filed motions seeking relief from the automatic stay, arising where a homeowner with a solar loan also carries a mortgage and the servicer seeks clarity on collateral rights or the ability to proceed with foreclosure.
Borrower claims and loan ownership. Individual borrowers have filed claims seeking determination of loan ownership and challenging their loan obligations, raising questions about whether the original lender, Mosaic, or securitization trusts hold beneficial ownership of specific loans.
Adversary proceedings. The case features multiple adversary proceedings involving consumer borrowers, including Djemil (Case No. 25-03599) and Gouveia, alongside a debtor-initiated action, Mosaic v. Hodges.
DLA Piper, BRG, and the Forbright Lender Team
Debtor Professional Team.
Role
Firm
Lead Counsel
DLA Piper LLP
Special Counsel
Paul Hastings LLP
Financial Advisor
FTI Consulting, Inc.
Chief Restructuring Officer
Berkeley Research Group, LLC (Mark A. Renzi)
Investment Banker
Jefferies LLC
Tax Advisor
Deloitte Tax LLP
Claims Agent
Kroll Restructuring Administration LLC
Strategic Communications
C Street Advisory Group
Plan Administrator
Olive Advisors, LLC (Jim Birmingham)
Secured lender advisors. Forbright Bank's lender group was advised by Blank Rome LLP as legal counsel and Huron Consulting Group as financial advisor.
CRO background. Mark A. Renzi, the Chief Restructuring Officer, is a Managing Director at Berkeley Research Group in the firm's Boston office. He joined BRG in 2016 from FTI Consulting, and his consumer-finance restructuring work spans mortgage servicing, auto finance, installment lending, and structured finance.
Key Timeline
Date
Event
2010
Billy Parish and Daniel Rosen found Solar Mosaic
January 2013
Launch crowdfunding platform; first projects sell out in <24 hours
2014
Pivot to residential solar loan origination
April 2016
Secure $200 million warehouse facility (DZ Bank, NY Green Bank)
August 2016
Close $220 million Series C led by Warburg Pincus
2019+
Consumer lawsuits and CFPB complaints mount
2023
Patrick Moore named CEO; Billy Parish becomes Executive Chair
March 8, 2024
Minnesota Attorney General sues Mosaic and three other solar lenders
August 2024
Retain Rockefeller Capital Management for recapitalization
2024
Residential solar installations decline 31%
June 6, 2025
Chapter 11 petitions filed (S.D. Texas)
June 6, 2025
$45 million DIP financing secured (Forbright as agent)
June 13, 2025
Bidding procedures order entered
July 4, 2025
OBBBA signed into law, cutting solar tax credits short by 7 years
September 3, 2025
Fourth Amended Plan of Liquidation filed
September 5, 2025
Confirmation Order entered (91 days from petition)
September 22, 2025
Effective date; Solar Servicing LLC acquires operations
Late 2025
Post-confirmation consumer claims and adversary proceedings continue
Frequently Asked Questions
What caused Mosaic Sustainable Finance to file for bankruptcy?
Policy uncertainty around solar tax credits, a 31% decline in residential solar installations in 2024, elevated interest rates, and failed capital raise attempts led to the June 2025 filing. The company had retained Rockefeller Capital Management in August 2024 to develop a recapitalization plan, and subsequently engaged Jefferies, but could not secure the needed capital.
What happened to Mosaic's loan servicing business?
Solar Servicing LLC, a wholly owned subsidiary of secured creditor Forbright Bank, acquired substantially all loan servicing operations under the confirmed plan. Over $8 billion in loans continue to be serviced by Solar Servicing following the September 22, 2025 effective date.
Will borrowers' payment terms change after the bankruptcy?
No. Borrowers' payment terms and schedules remain unchanged under Solar Servicing LLC's administration. Homeowners with existing Mosaic loans continue making the same payments, with only the servicer identity changing.
What type of chapter 11 plan was confirmed?
A Fourth Amended Joint Chapter 11 Plan of Liquidation was confirmed on September 5, 2025. This is a liquidating plan, meaning a wind-down of the debtors rather than a going-concern reorganization. The loan origination business was terminated, with only servicing operations continuing under Forbright's subsidiary.
Is Mosaic still originating new solar loans?
No. Solar Servicing LLC has no plans to originate new solar loans. The loan origination business that Mosaic built over 15 years has been shut down. The company now exists solely as a servicing operation for existing loans.
How long did the bankruptcy case take?
91 days from petition (June 6, 2025) to confirmation (September 5, 2025), with the effective date on September 22, 2025. The case required four plan amendments before reaching a confirmable structure, but secured lender support enabled an expedited timeline.
What role did Forbright Bank play in the restructuring?
Forbright Bank was the administrative agent for prepetition secured debt of approximately $113.6 million, provided the $45 million DIP financing facility, and its subsidiary Solar Servicing LLC acquired the loan servicing operations. Forbright effectively controlled the restructuring outcome through its secured position.
Were there consumer complaints against Mosaic before bankruptcy?
Yes. Minnesota Attorney General Keith Ellison sued Mosaic in March 2024 alleging deceptive hidden dealer fees affecting more than 2,100 Minnesota borrowers. Nearly 160 CFPB complaints had been filed against Mosaic since 2019, and California lawsuits alleged fraudulent lending practices.
How does Mosaic's bankruptcy reflect broader solar industry distress?
Mosaic's bankruptcy occurred amid the 31% decline in residential solar installations in 2024, OBBBA's passage cutting tax credits short by seven years, and SEIA's 22% downgrade to its base case residential solar outlook. Other major lenders including Sunlight Financial have also faced bankruptcy, and the Minnesota AG lawsuit named four lenders including GoodLeap and Dividend Solar.
What is the post-confirmation status of the case?
Post-confirmation administration continues with multiple consumer borrower claims, relief from stay motions from mortgage servicers, and adversary proceedings involving loan ownership disputes.
Sale and Bidding Procedures Motion /documents/165573b6-5ef1-445a-9ce3-d2bc879f7ba5/
First Day Declaration /documents/4d269a18-2ecc-4e63-a97c-c06b4a924b2e/
Interim Cash Collateral Order /documents/1b008313-b00f-4c18-94a7-f1718f1eb2b4/
Bidding Procedures Order /documents/0d4e1f2a-67eb-4974-b038-ecf9336fcedd/
Fourth Amended Plan of Liquidation /documents/12a82734-cc0b-4d0a-aa29-0308fe8708c3/
Confirmation Order /documents/ed753f4d-3a4a-4eca-bfff-9b7cbffe124c/
invest as little as $25 in specific solar projects https://e360.yale.edu/features/mosaic_billy_parish_harnessing_citizen_power_to_fund_solar_energy_projects
funding over $15 billion in loans https://www.solarpowerworldonline.com/2025/06/solar-finance-platform-mosaic-files-for-bankruptcy/
31% decline in installations https://www.pv-magazine.com/2025/06/09/us-residential-solar-lender-mosaic-files-for-bankruptcy-amid-policy-uncertainty/
liquidating plan https://www.businesswire.com/news/home/20250904759018/en/Mosaic-Receives-Court-Approval-of-Plan-of-Reorganization
originating residential solar loans https://www.ecowatch.com/solar/solar-financing/mosaic-loan
$200 million in warehouse credit facilities https://www.prnewswire.com/news-releases/mosaic-announces-220-million-equity-financing-led-by-warburg-pincus-300309643.html
retained Rockefeller Capital Management https://chapter11cases.com/blogs/news/solar-financing-firm-mosaic-files-chapter-11-with-dual-path-restructuring-plan
One Big Beautiful Bill Act (OBBBA) was signed into law https://www.solar.com/learn/trump-and-the-fate-of-the-30-solar-tax-credit/
installed 7.5 GWdc in Q2 2025 https://seia.org/research-resources/solar-market-insight-report-q3-2025/
Minnesota Attorney General Keith Ellison filed suit https://www.ag.state.mn.us/Office/Communications/2024/03/08_SolarLending.asp
characterized the complaint as a mischaracterization https://pv-magazine-usa.com/2024/04/26/minnesota-sues-goodleap-sunlight-mosaic-and-dividend-over-dealer-fees/
prepetition secured credit agreement with approximately $113.6 million in outstanding principal https://www.forbrightbank.com/stories/newsroom/solar-mosaics-loan-servicing-operations-transition-to-solar-servicing/
secured a $45 million DIP financing facility https://www.businesswire.com/news/home/20250606407493/en/Mosaic-Takes-Strategic-Action-to-Restructure-and-Recapitalize-with-the-Support-of-Its-Lender-to-Position-the-Company-for-the-Future
sought court approval for a $1.65 million employee retention plan https://chapter11cases.com/blogs/news/mosaic-sustainable-finance-seeks-court-approval-for-1-65-million-employee-retention-plan-in-chapter-11-case
Hon. Christopher M. Lopez confirmed the liquidating plan https://www.businesswire.com/news/home/20250922088556/en/Solar-Mosaics-Loan-Servicing-Operations-Transition-to-Solar-Servicing
more than $8 billion in outstanding loans https://pv-magazine-usa.com/2025/09/25/bankrupt-residential-solar-loan-provider-mosaic-is-acquired/
retained the team supporting installers for partially funded loans https://www.solarpowerworldonline.com/2025/09/solar-servicing-acquires-mosaic-assets-resumes-pv-lending/
Managing Director at Berkeley Research Group https://www.thinkbrg.com/people/mark-a-renzi/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.