Sunnova Energy International Inc.'s Chapter 11 cases are in post-confirmation wind-down, with the Third Amended Joint Chapter 11 Plan confirmed on November 10, 2025 and effective shortly thereafter, and the estates now administered by Creditor Trustee Thomas A. Pitta through a liquidating Creditor Trust. The Houston-based residential solar company and its debtor affiliates commenced cases on June 8, 2025 (Voluntary PetitionsDkt. 1), driven into court by a liquidity crisis that had compounded since late 2024. Rising interest rates, an unfavorable capital-markets environment, tariff and policy uncertainty around solar incentives, and softening residential demand had eroded cash to the point that the company could not meet roughly $24 million in interest on its 11.75% Senior Notes or approximately $170 million coming due under its SLA warehouse facility, and an effort to raise roughly $300 million in bridge financing had failed. After initiating liability-management discussions in December 2024 and closing a $185 million KKR bridge loan in March 2025, the Debtors filed with approximately $13.5 million in available cash and roughly $8.9 billion in total funded debt layered across securitized asset-backed and loan-backed notes, warehouse facilities, senior unsecured notes, convertible notes, and the KKR loan (CEO DeclarationDkt. 17).
The restructuring resolved quickly into an asset sale and structured wind-down rather than a going-concern reorganization. The CRO declaration framed a roughly ninety-day sale timeline backed by debtor-in-possession financing from an Ad Hoc Group of noteholders (CRO DeclarationDkt. 25). Pursuant to the solicitation-version disclosure statement, substantially all assets were sold to the DIP lenders through a $90 million credit bid, $25 million in cash, and assumption of the KKR, SLA, and TEPH facilities, with that sale closing in early September 2025; the Plan then channeled all remaining estate value into a liquidating Creditor Trust (Third Amended Disclosure StatementDkt. 870). The three impaired creditor classes — Senior Notes Claims, General Unsecured Claims, and Convertible Notes Claims, carrying a combined $2.35 billion in claims — share pro rata in trust distributions against projected recoveries of only 1.9% to 2.2%, while equity in Sunnova Energy International receives nothing. A Special Committee of disinterested directors investigated potential causes of action tied to the contested KKR Facility.
Judge Alfredo R. Perez confirmed the Plan on November 10, 2025, with the order entered November 12 (Confirmation OrderDkt. 1205). Under the order, Mr. Pitta serves as sole director and officer of the Debtors, the Purchaser contributed approximately $8.4 million to fund trust expenses and distributions, and reserves were established for WARN Act, Lone Star, and One Earth Solar claims. Trust oversight rests with a board drawn from Fidelity Management & Research, Power Solar, Susquehanna International Group, and Keyframe Capital Partners.
