Maxeon Solar Technologies, Ltd. - Business Update and Judicial Management Application

Maxeon Solar Technologies, Ltd. is facing significant financial challenges due to ongoing issues with U.S. Customs and Border Protection denying entry of certain product shipments, increased price competition, and impacts from recent legislation. These challenges have negatively affected cash flow and the company's ability to meet contractual obligations, leading to customer lawsuits seeking over $70 million in damages. The development of its Maxeon 8 technology has also faced setbacks. In response, the company has undertaken restructuring transactions, including divesting subsidiaries and selling its non-U.S. distributed generation business. Despite negotiations for debt and equity financing, no successful outcomes are yet visible. Consequently, the company's board has determined there are significant doubts about its working capital sufficiency. On April 1, 2026, Maxeon Solar Technologies, Ltd. and its subsidiary Maxeon Solar Pte Ltd. filed voluntary applications with the High Court of Singapore to be placed under judicial management. This court-ordered restructuring process aims to provide breathing space for rehabilitation and a better realization of assets compared to liquidation. The company has proposed Deloitte Singapore as joint and several judicial managers. The applications seek the company's survival as a going concern, approval of a compromise with creditors, or a more advantageous realization of assets. An automatic statutory moratorium is now in effect, restricting legal actions against the company. The company also announced the termination of its Amended Bilateral Development Services Agreement (BDSA) with TZE HK and Lumetech, with TZE agreeing to pay a termination fee of US$2,520,000. Additionally, the Procurement Agency Agreement with Lumetech has been terminated, with Lumetech paying a fee of US$196,500. A settlement agreement was reached with Huansheng Parties, resulting in a net payment of US$164,450 to Maxeon. In a separate development, Maxeon has assigned its right to receive a US$14 million license fee payment from Shanghai Aiko Solar Energy Co., Ltd. to its licensing agent in exchange for an upfront payment of approximately US$7.9 million.