SunPower Inc filed an amended plan and disclosure statement today (19 September) detailing proposed creditor recoveries.

In the initial versions of the plan and disclosure statement, the debtors did not provide the projected principal amount of claims and projected plan recovery. The latest versions show that second lien secured claims and general unsecured creditors are not expected to receive any recovery.

SunPower’s plan contemplates the distribution of the proceeds from multiple sales of the debtors’ assets and the subsequent wind-down of the company. The debtors recently named Complete Solaria Inc as the winning bidder for its going concern assets, and it designated Frontier Investment Partners and GF SunStrong Capital LLC as the winning bidders for certain other assets.

Prepetition first lien secured claims, estimated at up to USD 295m, are anticipated to have 8% recovery on account of their claims. Under the plan, they will receive cash on the effective date and payment in cash of all then-existing distributable proceeds — including cash and cash proceeds generated from the use, sale, lease, liquidation or other disposition of estate or wind-down debtor property. They will also be entitled to a pro rata share of distributable proceeds, if any, until such claims are paid in full. In the event a creditor trust is established, the foregoing treatment shall be implemented through the pro rata distribution of beneficial interests in the creditor trust and, if applicable, the pro rata distribution of creditor trust’s net assets to such holders.

Prepetition second lien secured claims, estimated at up to USD 185.4m, are not expected to see any recovery on account of their claims. The plan provides them with a pro rata share of distributable proceeds, if any, up to the allowed amount of their claim. If a creditor trust is established, the foregoing treatment will be implemented via the pro rata distribution of beneficial interests in the creditor trust to holders of such assets and, if applicable, the pro rata distribution of the trust’s net assets.

General unsecured creditors are also expected to see zero recovery on account of an estimated USD 480m to USD 700m in claims. They will receive a pro rata share of distributable proceeds or a pro rata share of the beneficial interests in the creditor trust, should one be established.

Other secured claims did not have a projected principal amount, and the projected plan recovery was not available. Other priority claims, estimated at USD 1m to USD 3m, are expected to see 100% recovery. Intercompany claims, intercompany interests, interests in SunPower and 510(b) claims also had no projected principal amount.

The court will consider the disclosure statement on 23 September at 10am ET, and the debtors’ confirmation hearing is scheduled for 18 October at 2:30pm ET.

SunPower entered Chapter 11 on 5 August with a total of more than USD 2bn in funded debt across debtor and non-debtor entities. Of that total, USD 483m was owed by the co-debtors in the bankruptcy and the remainder was owed by non-debtors. The company blamed a number of factors for its recent financial troubles, such as macroeconomic headwinds that impacted its base of customers in the residential housing market, and company-specific operational issues.