Sunworks (NASDAQ: SUNW) shares plummeted almost 60% on Tuesday after filing for bankruptcy.
Sunworks (SUNW), along with three of its subsidiaries, has stopped its operations and filed for bankruptcy under Chapter 7 in the US Bankruptcy Court for the District of Delaware on Monday.
The company reported its assets to be between $100 million-$500 million, while its liabilities are less than $0.05 million. David M. Klauder from Bielli & Klauder, LLC will serve as the legal representative for the debtor.
The Bankruptcy Court will appoint a trustee to manage the assets and liabilities of the company under Chapter 7. This means that the Board of Directors and executive officers of Sunworks will lose their authority to make decisions for the company. The assets of Sunworks will be sold off, and any claims will be settled as per the Bankruptcy Code.
The CEO, Mark Trout, resigned on February 5, 2024. As of that date, the company lacks any officers, consultants, or employees. In addition, on the same day, directors Mark Trout, Patrick McCullough, Rhone Resch, and Stanley Speer also stepped down from their positions. Sunworks doesn’t have any active members on its board of directors.
Sunworks (NASDAQ: SUNW) Stock Reaction
SUNW stock plunged 58.37% to close at $0.09 on Tuesday. The traders had exchanged hands with 65,158,801 (65.15 million) shares compared to the average daily trading volume of 3.02 million.
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