SunPower shares slide after raising going-concern doubts
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FILE PHOTO: A solar panel parking lot model display of the solar power generation company SunPower is seen inside one of their offices in Richmond, California, U.S., July 15, 2021. REUTERS/Peter DaSilva/File Photo
By Sourasis Bose
(Reuters) -SunPower on Monday raised doubts about its ability to stay in business, saying that its breach of a key term in a credit agreement could prompt lenders to recall certain loans, sending its shares tumbling 23%.
The company said in a regulatory filing that lenders may demand immediate payment of $65.3 million in debt after it failed to file its third-quarter results on time.
SunPower said it was currently in talks with the lenders for a waiver, adding that if it failed to secure one, it would not have sufficient funds for its day-to-day operations.
However, Raymond James analyst Pavel Molchanov told Reuters that the company would not have any problem obtaining a waiver since it was essentially a technical issue.
Earlier in the month, the company was able to secure a waiver after breaching the terms of a larger credit agreement.
SunPower had revealed in October that it would restate its financial statements for last year as well as the first and second quarters due to issues with inventory valuation.
(Reporting by Sourasis Bose in Bengaluru; Editing by Anil D'Silva)
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