California solar installer HelioPower filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Nevada on Wednesday.
The filing, signed by HelioPower President Maurice Russo, says that despite borrowing nearly $3 million from its parent company Sierra Nevada Solar (SNS) over a period of years, its current revenues are not enough to keep up with its debt obligations. In fact, HelioPower has borrowed $182,218 from SNS so far in 2017 just to meet its payroll obligations.
In the court documents, Russo blamed the cash-flow deficits on frequent 60 to 90 day lags between the time work was performed by the company and the time cash was received for the work performed.
“Unfortunately, however, [HelioPower’s] current revenues and cash flow do not allow it to meet its current expense obligations to continue running the business,” Russo says in the filing. “As a result of the foregoing and the Debtor’s desire to continue its business operations, on [April 25], the Debtor filed its voluntary petition for relief under chapter 11 of the Bankruptcy Code.”
The court granted HelioPower the right to use its cash assets to keep paying its 53 employees all wages, employee benefit programs, and workers’ compensation programs – up to a cap of $12,850 – for another week. In the document asking for the aforementioned right, HelioPower estimated that it owed no employee more than the cap number.
HelioPower estimates it owes its employees approximately $124,000 in wages, the Internal Revenue Service (IRS) approximately $35,000 in payroll taxes, and health and welfare plans approximately $14,000 for the pay period ending May 5.
According to the papers filed with the court, the company has between 1,000 and 5,000 creditors, among them well-known solar-industry names like Canadian Solar ($70,489), SunPower ($130,402) and SMA Americas (amount unknown).*
The HelioPower website claims that “since 2001, the company has engineered and installed more than 5,000 solar power and clean energy solutions for residential, commercial, community and utility-scale customers and partners in the United States and worldwide.”
* All debt amounts come from papers filed with the bankruptcy court.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.
Sorry to see this sad event occur for a team that had incredible passion for our planet. I worked for Heliopower for over a year and my hats are off to Ian, Mo, Tom, and Jonah. Miss you guys! Keep the faith!!
Such a great company, everyone we dealt with at every level was fantastic to work with.
I tried to work with (not for) this company back in 2011, and the arrogance was astounding. Completely unsurprised by this. This is also typical of larger companies; make great promises to clients, do thousands of systems, and don’t make good on those promises.
This is what the corporate world calls “good business”
Heliipower did an A+ installtion job for me, and an F- on every aspect of running a business: Failure to return ANY phone calls, incorrect filing of papers with SDG&E, a system that sat for over 6 months, supposedly working, but allowimg NO credit against my electric bill. I paid $52,000 for my system, incurred another $5,000 in SDG&E bills before Heliopower did the correct paperwork and signage over 6 months!
I took them to small claims court which they delayed 2 days before the hearing ( for 90 days claiming they were a “small company” that need to prepare a defense…) Incidentally, this “small company” (according to Wikipedia) )did 133 Million dollars of business in 2016, had over 130 employess and 4 storefront locations.
I was SO sick of Heliopower and the court system, I agreed to settle for a lesser amount ( aporox. 50% of the claim). 60 days later they “assured” me they were going to the president to “request” payment…. A week later they filed chapter 11….
Liars and cheaters who deserve bankruptcy.
You have my required fields: Joseph Michael Maloney, and correct Email address
I don’t understand what us wrong with my name abd email address….
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.