SUNation Eliminates $1.1M Legacy Debt for $800K

SUNation Energy eliminated the remaining portion of approximately $1.1 million of legacy debt tied to a long-term promissory note of its wholly owned subsidiary, SUNation Solar Systems. The company negotiated a one-time lump-sum settlement payment of $800,000 to retire the note.

The debt originated from an April 2021 buyout agreement related to retirement of a former SUNation Solar Systems shareholder. Before settlement, the promissory note had remaining principal of approximately $1.1 million and required monthly payments of about $25,000 through 2031. After the transaction, SUNation reduced aggregate principal obligation by about $335,000 and expects recurring monthly obligation to drop to about $5,000, saving about $20,000 per month going forward.