Grasshopper Solar Placed in Receivership

The Ontario Superior Court of Justice (Commercial List) appointed a receiver over Grasshopper Solar’s core solar funds and leasing entities on September 23, 2025, on application by lenders Deutsche Bank Trust Company Americas, Deutsche Bank AG Canada Branch, and Bank of Nova Scotia.

Grasshopper operates a significant portfolio of solar projects, with more than 3,500 installations across the province under long-term FIT and microFIT contracts. Its structure spans 60 corporations and partnerships, including residential rooftop portfolios held through GSC Solar Leasing LP and GSC Solar Leasing II LP, and a commercial and industrial book partially co-owned with First Nations, municipalities, hospitals, and other community stakeholders.

The business has recently struggled. As of September 1, 2025, the group owed $148.2 million under senior secured credit facilities that matured on June 29, 2025. Defaults included covenant breaches, missed debt service, equity distributions contrary to waterfall provisions, and failures to keep assets in prudent operating condition. Critically, management of the entity with sole responsibility for operating and maintaining Grasshopper’s entire business has resigned effective September 30, leaving the projects without essential functionality.

The receivership plan was structured to balance stability with minimizing disruption to third-party co-owners. The order places Grasshopper’s fund-level borrowers, their general partners, and the residential leasing entities into full receivership, while extending protective relief to affiliated project holding companies and service providers.

The lenders’ objectives are to stabilize the portfolios, remediate technical issues, and subsequently launch a sale and investment solicitation process to monetize the equity interests in Grasshopper’s project subsidiaries. Spark Power Renewables Canada Inc. and FAAN Advisors Group Inc. have been appointed to deliver operations and maintenance.

Alvarez & Marsal Canada Inc. has been appointed receiver. Torys LLP acts for the applicant lenders, with Blakes as counsel to Deutsche Bank as agent. Goodmans LLP represents the receiver, and Blaney McMurtry LLP represents Grasshopper.