Bankrupt PosiGen Accused of Diverting Solar Project Cash in Suit

A group of PosiGen PBC’s nonbankrupt affiliates sued the solar installer, accusing it of diverting millions in project revenues to fund its Chapter 11 case.

PosiGen violated agreements that required separate cash management for each project company and instead ran an “illicit, unauthorized centralized cash collection system,” the affiliates said in a complaint filed Monday in the US Bankruptcy Court for the Southern District of Texas.

The companies alleged that PosiGen funneled project revenues into a centralized bank account under its control, rather than keeping segregated accounts as required under their agreements, and then planned to use the affiliates’ cash ...