In the filing, Maxeon outlined a series of measures undertaken over the past two years to address mounting challenges, particularly those arising from the continued detention of its solar modules by U.S. Customs and Border Protection. These efforts have included divesting subsidiaries, selling its non-U.S. business operations, and implementing broader restructuring initiatives.

Despite these actions, the company is now facing multiple legal claims alleging breach of contract and seeking damages exceeding $70 million. In response, Maxeon’s management team and board of directors have approved voluntary applications for both the parent company and its subsidiary, Maxeon Solar Pte Ltd., to be placed under judicial management. The applications were filed pursuant to Section 91 of Insolvency, Restructuring and Dissolution Act 2018.

According to the filing, Maxeon intends to pursue a restructuring process aimed at reaching a compromise or arrangement with its creditors. The objective is to enable the company to continue operating as a going concern or to achieve a more favorable outcome for its assets compared to a potential liquidation scenario.

The board has also nominated specific individuals from Deloitte Singapore SR&T Restructuring Services Pte. Ltd. to serve as judicial managers for both entities, subject to court approval.

Once recognized as a leading producer of some of the world’s most efficient solar panels, Maxeon’s difficulties can be traced back to 2024, when all of its Mexico-manufactured products were detained by U.S. authorities, significantly disrupting its operations and revenue streams.

An initial court hearing on the judicial management application has been scheduled for 10:00 a.m. Singapore time on April 9 (7:00 p.m. PDT on April 8). Further details are expected to emerge following the proceedings.