Hit by multiple macroeconomic challenges, U.S. residential solar fintech and energy-efficient home improvement platform Solar Mosaic has filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.

The company aims to complete its restructuring and recapitalization through this filing.

Solar Mosaic stated that its capital flows had been impacted by challenges, including high interest rates and legislation that threatened to remove residential solar tax credits.

The company determined that a court-supervised restructuring and recapitalization process was the best option to maintain its loan servicing platform, achieve a full sale and marketing process for its assets, and maximize value for its stakeholders.

Some of its existing lenders will support this process. One of the lenders, Forbright Bank, will act as an administrative agent on behalf of Solar Mosaic’s lenders.

Forbright Bank is Solar Mosaic’s existing loan-servicing customer. It plans to use its financial support to help the company’s servicing operations for all loan owners.

Solar Mosaic said it took initiatives to strategically and operationally reorganize its business to meet its liquidity requirements before filing for Chapter 11.

The company expects to remain completely operational without disruption throughout the court-supervised process. It stated that it plans to continue working with its network of installers, investors, capital markets partners, and customers.

Solar Mosaic aims to maintain its loan servicing operations to ensure continued loan payments from customers and remission of collections to loan owners.

The company said that it had filed multiple customary motions with the court to continue its operations as usual during the restructuring and recapitalization process. The motions include requesting the court authorities to pay employee wages and benefits, compensate certain vendors and suppliers on a going-forward basis, and facilitate the completion of partially finished installation projects.

Solar Mosaic will receive debtor-in-possession financing of $45 million from its existing lenders. This financing will include $15 million in new financing post the court’s approval. This amount will fund the company’s ongoing operations and administrative expenses.

According to Mercom Capital Group, Solar Mosaic has completed about 13 securitization deals to date, raising a total of over $3 billion.

Recently, U.S.-based residential solar company Sunnova Energy also filed for Chapter 11 bankruptcy protection under pressure from increasing debt and falling demand.