Sunnova Energy’s Liquidation Plan Approved in Bankruptcy Court

The judge overseeing Sunnova Energy’s default approved the solar financier’s liquidation plan that creates a trust to pay creditors, marking a key step toward emerging from bankruptcy.

Judge Alfredo R. Pérez of the US Bankruptcy Court for the Southern District of Texas approved the plan during a confirmation hearing Monday, overruling objections from the US Trustee, the Justice Department’s bankruptcy monitor.

The agency opposed the plan over the opt-out process for liability releases for nondebtor parties and the language of exculpation provisions reducing liability for certain parties participating in Sunnova’s bankruptcy. It argued the plan improperly imposed third-party releases without ...