Staff from SolarZero, owned by US investment giant BlackRock have been dealt a crushing blow after the company's shock liquidation.
Video / NZ Herald
SolarZero employees protested in Auckland today after the company’s shock liquidation, demanding US investment giant BlackRock pay nearly $4 million to workers.
Staff say they were advised on Tuesday they would not receive holiday pay or redundancies.
Employees have also urged former Prime Minister Chris Hipkins to ask BlackRock’s CEO to “do the right thing” for Kiwi workers.
The company’s 160 staff were called to a company-wide meeting on Tuesday and told of the news – claiming they would not receive holiday or redundancy pay payouts.
Employees have since called on former Prime Minister Chris Hipkins, who welcomed BlackRock’s plans to develop a $2 billion climate infrastructure fund for New Zealand, to ask the investment company to “do the right thing” for Kiwi workers.
In a statement today, SolarZero employees said more than 160 staff were also asked to leave the building “immediately” on Tuesday – one month before Christmas and with “no prospect” of finding jobs until February.
“Holiday pay, notice period and contractors have not been paid ... Over 160 workers have been thrown on the street,” the statement read.
SolarZero workers flocked to Auckland's CBD this afternoon in protest after the company's shock liquidation. Photo / Dean Purcell
“Eighteen months ago, as Prime Minister, Chris Hipkins welcomed BlackRock’s plans to develop a $2b climate infrastructure fund for New Zealand. At the time there were calls between the then Prime Minister and Larry Fink, the CEO of BlackRock.
“Chris, on behalf of SolarZero employees and all Kiwi workers, we ask that you contact Larry Fink and ask him to do the right thing. Use your relationship with Larry to get BlackRock to pay SolarZero workers what they are owed.”
The statement also asked in hindsight if it was a “great idea” welcoming the $2b funding initiative and if Hipkins was comfortable that BlackRock is now 40% of the KiwiSaver market given its treatment of SolarZero workers.
Employees and supporters today took to Auckland’s streets in protest over BlackRock, marching on the firm’s Auckland office.
“We’re talking about 200 people that are owed $4 million because BlackRock decided to pull the pin on SolarZero, which is New Zealand’s largest solar company,” said SolarZero employee Mike Worsp.
SolarZero staffers were advised of the news on Tuesday and have received no promise of holiday pay or redundancies. Photo / Dean Purcell
One staffer earlier told the Herald he asked management for figures on the amount owing to staff – to which he was told about $1.4m was owing in holiday pay and $1.6m for one-month notice pay. About $900,000 was also outstanding with contractors and subcontractors, he claimed.
“It sets a dangerous precedent for foreign investors coming in and thinking that they can do what they want and treat Kiwis and work permit holders like crap,” Worsp said at the protest.
“It’s really disappointing and we’re hoping that BlackRock will stand up and open their chequebook and do the right thing and pay what’s owed.”
Worsp said employees would continue trying to have dialogue with BlackRock, which “hasn’t answered anything”.
“They’ve been very quiet, which is really, really disappointing. We’re hoping that we’ll hear a little bit more back from the liquidators next week.”
Another protester said they weren’t there to “create any trouble”.
“We are here for a peaceful protest and to make everybody aware as to what this international, multinational, billion, trillion dollar company [is doing].”
One protester over a megaphone called BlackRock “the dark lord”.
United States investment giant BlackRock bought SolarZero from its Kiwi founders in a mid-2022 deal. Photo / Dean Purcell
SolarZero offered no-money-up-front solar panel installations, instead charging a monthly subscription over a 25-year contract. It quoted $177 for a four-person household.
BlackRock bought SolarZero from its Kiwi founders in a mid-2022 deal. The price was not disclosed, but the deal required Overseas Investment Office (OIO) approval, implying it was above the OIO’s $100m assessment threshold.
In a statement to the Herald, a BlackRock spokesperson said: “A fund managed by BlackRock Climate Infrastructure business became the sole shareholder of SolarZero in December 2022 and has provided significant funding to the company over the past two years to support its strategy and growth.
“The fund was a shareholder in SolarZero, on behalf of its underlying investors, and has not taken any capital or charged fees to SolarZero during the period it held an interest in SolarZero.
“The decision regarding the liquidation of SolarZero was made solely by the board of SolarZero, having considered operations and long-term prospects of the business. The board of SolarZero formed a view that the SolarZero business was not sustainable in the long term without significant restructuring.
“Extensive discussions were held with multiple stakeholders to identify options. Despite active engagement, a solution wasn’t able to be found and SolarZero’s board made the decision to instruct the fund, as shareholder of SolarZero, to appoint a third-party liquidator to oversee the transition of the business and address the interests of creditors, including employees.”
NZ Green Investment Finance (NZGIF) – a “green investment bank” created by the previous Government to fund environmentally friendly businesses – made a $145m debt facility available to SolarZero, as well as facilitating $220m in credit lines from international private lenders First Sentier Investors, Natixis Investment Managers and Societe Generale.
This morning, NZGIF said: “A total of $365m from all lenders was available, but this was not fully drawn down at the point of SolarZero’s liquidation – and some had been repaid.
“At the time of SolarZero’s liquidation, approximately $115m of NZGIF’s commitment was drawn down against installations.”
Benjamin Plummer is an Auckland-based reporter who covers breaking news. He has worked for the Herald since 2022.
Sign up to The Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.
