A federal bankruptcy judge on Tuesday cleared the way for the sale of Williston-based solar installer iSun to a private energy investment firm for $10 million.
Clean Royalties, an affiliate of Texas-based Siltstone Capital, was the sole bidder at an auction in federal bankruptcy court, competing to buy iSun after the Vermont-based company filed for bankruptcy in June.
The proposed sale faced numerous objections from the numerous companies to which iSun owes money. But after a series of closed-door negotiations delayed a court hearing, the list of objections was narrowed to just a few, and a judge said he was willing to sign off on the deal once those objections were resolved.
What exactly the sale will mean for iSun’s operations is unclear. Siltstone Capital has not provided plans for the company and its assets, which were valued at $66.7 million in 2023.
“We believe Clean Royalties is much better capitalized, has a better platform and is better positioned to continue to serve (iSun’s) customers and business partners,” Michael Busenkell, an attorney representing the Vermont company, said at Tuesday’s hearing.
iSun is by far Vermont’s largest solar installer and is one of only a handful of publicly traded companies in the state. Originally a family-owned electrical contractor called Peck Electric, iSun went public in 2019 and two years later purchased Vermont residential solar installer SunCommon for $40 million.
The move brought in millions in new investment capital and helped the company expand rapidly. However, the growth did not translate into profits, and iSun posted losses of $73.2 million in 2022-2023. When the company filed for bankruptcy, iSun was losing $250,000 a week and was on the verge of closure.
The company’s problems may not be over yet. A whistleblower complaint filed with the US Securities and Exchange Commission (SEC) accuses those responsible of misleading shareholders and being guilty of “extensive” misconduct. And a surety company has sued iSun’s CEO, Jeffrey Peck, personally, seeking to hold him liable for millions in losses related to botched major projects.
