The solar industry should have had a good week, with interest rates continuing to fall and the residential solar industry looking like it's about to turn a corner. Instead, SunPower's (NASDAQ: SPWR) shares collapsed 27%, according to data provided by S&P Global Market Intelligence, because SunPower warned investors that it may not be a "going concern" if it can't find additional financing.

This week, SunPower announced it had breached covenants on debt that could be immediately callable, meaning the company would have to pay off the debt right away. If bondholders called the loan, it could cause SunPower to run out of cash very quickly.

But we also learned that SunPower has gotten waivers from bondholders through at least Jan. 19, 2024, to find new financing or improve its financial position. This could mean extending waivers or raising new capital either in debt markets or through stock sales.

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Source Fool.com