Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Thursday, July 10. In today's briefing, surging defaults on residential solar panel loans, particularly those tied to fintech lender GoodLeap, are rippling through Wall Street. And Linda Yaccarino is stepping down as CEO of X, as Elon Musk shifts the company’s focus toward artificial intelligence by merging it with his chatbot venture xAI, sidelining the lower-margin social-media business she led.

Surging defaults on loans used to buy residential solar panels are cascading through Wall Street, catching bond investors and private-credit funds in their wake.

Some bonds tied to GoodLeap, a financial-technology firm that lends money for solar installations, have stopped paying interest, people familiar with the matter said. The payments stopped because far more homeowners are defaulting on the loans than initially forecast, they said.

Solar bonds are one niche in the growing ecosystem built by nonbank lenders like GoodLeap, which use artificial intelligence and financial-market expertise to let Americans borrow with a click of the mouse. The “fintechs” connect consumers with debt investors eager to lend to them, but higher interest rates have pushed loan payments up and more borrowers are falling behind.

maker xAI this spring, fusing two of his technology bets and making the social-media platform part of a broader AI-focused company.

The high-growth potential of artificial intelligence became more important to investors than the tighter-margin social-media business overseen by Yaccarino.

A bankruptcy judge said she will allow Prospect Medical to take out a new $30 million debtor-in-possession loan from JMB Capital, overruling objections from landlord and lender Medical Properties Trust at a hearing on Wednesday.

MPT opposed the new loan as it ranks above its own debt to the company. MPT argued that under a settlement it reached with Prospect in March, the company needed to obtain the landlord's consent unless it had made sufficient progress on certain asset sales. Prospect missed deadlines in May and June to find a stalking-horse bidder and to conduct an auction for its California hospitals.

MPT also offered a competing $30 million loan at cheaper interest rates, but Prospect rejected the offer. JMB's loan is a better deal because it comes with an option to borrow additional money later on, Thomas Califano told Judge Stacey Jernigan. The company will run out of money by August without the new loan, Califano told the Judge.

—Soma Biswas

RxSight's new guidance comes with greater conservatism but its path forward has less visibility, Oppenheimer's Steven Lichtman says in a research note. The ophthalmic medical-device company on Tuesday guided for a decline in second-quarter revenue and lowered its full-year revenue guidance. Lichtman says the updated guidance and stock reaction suggest a depressed 1x EV/sales multiple.

"However, visibility has now been meaningfully reduced, particularly with new system demand well below expectations and as RxSight's new initiatives don't seem to us to be quick fixes," says the analyst, prompting a downgrade to perform from outperform and removal of the prior $28 price target. Shares fell 38% to $7.95 on Wednesday.

—Denny Jacob

Tariff uncertainty has hit some companies hard, but for Zonos, a private-equity-backed provider of cross-border e-commerce technology, business is booming.

Its software helps customers calculate a product’s total delivery costs, including transportation fees, customs duties, taxes and other handling charges—a service that many companies grappling with tariff uncertainty are seeking. It’s also the kind of business that private-equity firms are looking to invest in, but identifying companies positioned to thrive in the tariff upheaval is no easy task.

• GAC Fiat Chrysler Automobiles, a joint venture between Stellantis and China's Guangzhou Automobile Group, said on Tuesday it has been declared bankrupt. The joint venture posted images of a ruling issued by a court in China's Hunan province declaring the bankruptcy, alongside its announcement, in a social-media post. (Reuters)
• A U.S. district judge put on hold the bankruptcy sale of genetic testing company 23andMe late on Monday, giving California three days to make its case that the sale should remain blocked during an appeal related to the state's genetic privacy law. (Reuters)

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