Public Trust expected control over two companies linked to SolarZero just prior to its liquidation to safeguard household contracts and ensure that debt repayments were met.
This decision to liquidate was made following a special resolution by its shareholders on November 26, 2024, amid unsustainable operating losses and liquidity constraints that rendered the company unable to continue trading in its current form.
The recent liquidation has affected five out of seven associated companies, all of which were owned by a BlackRock investment fund. The two remaining companies, SolarZero Contract Servicer and SolarZero Residential Contract Servicer, are under the ownership of Public Trust.
Company records indicate that the ownership of the two companies shifted on the same date of the liquidation. The first company mentioned was previously held by “Public Trust as trustee of the SolarZero Residential Warehouse Trust in relation to the customer series,” while the second was held by “Public Trust as trustee of the SolarZero Residential No.1 Trust.”
Public Trust confirmed its role as trustee for these trusts, which are designed to protect funds used for purchasing, installing, and maintaining solar panels for customers. Payments from customers are directed into these trusts, which are managed by Public Trust and shielded from SolarZero’s financial troubles. Public Trust operates under directives from the lenders to these trusts, including New Zealand Green Investment Finance (NZGIF). The trusts continue functioning with a focus on maintaining services for customers.
NZGIF elaborated that the intended operation of this arrangement involved SolarZero drawing funds from NZGIF for equipment and installation costs upon signing contracts. As customers made their monthly payments, part of those funds would be allocated within the trust for future contractual commitments, including maintenance and equipment replacement. A portion of these funds is allocated to cover loan repayments, with any remaining amounts directed to SolarZero while it was still operational.
Under this new framework, Verofi will take over service arrangements.
Both Public Trust and NZGIF express confidence in these arrangements’ viability, countering narratives about potential financial losses or misallocation of funds to BlackRock. They maintain that the financing has fulfilled its purpose: solar panels remain installed and operational on customers’ homes, generating ongoing revenue.
SolarZero secured financing from NZGIF’s solar fund, which totals $365 million—comprised of contributions from NZGIF ($145 million), Societe Generale ($130 million), and Nataxis and First Sentia ($90 million). It is reported that SolarZero has drawn down $115 million from this fund; however, it remains unclear whether all of this capital was utilised solely for installations or diverted for other uses.
BlackRock has largely refrained from commenting on recent events.