Solar Mosaic Creditors Challenge Lender ‘Control’ of Bankruptcy

Solar Mosaic LLC’s current proposals to finance its bankruptcy and sell its residential solar loan business is improperly skewed in favor of company lenders and must be revised, a group of unsecured creditors said.

The US Bankruptcy Court for the Southern District of Texas should reject pending requests by Solar Mosaic to borrow $45 million from existing lenders and run a short sales process that grants lenders “substantial power to control” the case and take ownership of the company for little in return, an official creditors’ committee said in a filing Monday.

“The driving force, rising to the level sheer ...