Roughly $400 million of Sunnova’s $8.5 billion in debt was bought up by Oaktree Capital Management in purchases made across recent days.
As Sunnova prepares for negotiations with creditors, the purchases give Oaktree a significant role in the discussions. The purchases were reported by Bloomberg from people familiar with the matter.
Sunnova issued a going concern warning earlier this month, an accounting term that signals the company has reason to believe it may be out of business within a year. Sunnova’s corporate rating has a CCC- corporate rating from bond agency Fitch.
Following the company’s fourth quarter earnings and announcement that its cash flow is not sufficient to meet obligations and fund operations, Sunnova’s stock plunged over 70%. Last week, The Wall Street Journal reported that Sunnova is preparing to meet with creditors to find ways to cut its $8.5 billion in debt, either through filing for bankruptcy or through other ways, such as swapping some near-term bonds into equity.
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