In an April filing with the U.S. Securities and Exchange Commission (SEC), solar panel manufacturer Maxeon revealed it has applied to be placed under “judicial management” in its headquartered country of Singapore. This is a method of debt restructuring when a company is under financial distress, but is not a bankruptcy filing.
Maxeon stated that the company has been under economic stress ever since U.S. Customs and Border Protection (CBP) began seizing solar panels in 2024 for reviews under the Uyghur Forced Labor Prevention Act (UFLPA). Despite proving UFLPA compliance, Maxeon said CBP is not allowing its solar panels into the country.
Maxeon said CBP’s continued denial of entry has “negatively impacted the company’s ability to generate cash flow” and fulfill contractual commitments that have led to customers filing lawsuits against Maxeon, seeking damages of over $70 million.
Maxeon, the manufacturing spinoff from the once-dominant SunPower brand, decided in 2024 to only focus on supplying the U.S. market. The efficient brand was being contracted for large projects, including the 1-GW Gemini Solar project in Nevada. Maxeon was assembling solar panels in Mexico using Malaysian solar cells and had plans to start U.S. manufacturing in Albuquerque, New Mexico.
In the SEC filing, the company said it had a purchasing agreement with a third-party for modules assembled in the United States to bypass the CBP holding.
Maxeon should have some money coming in soon. The company entered a patent license agreement with Aiko Solar earlier this year, wherein Aiko will have access to Maxeon’s back contact solar cell and module patents outside of the United States for the next five years. Maxeon says this will result in an installment payment of $14 million by the end of this month.
Maxeon will have a hearing on the judicial management in Singapore’s Supreme Court later this week.
