In yet another sign of the struggles that solar power manufactures are facing, today utility-scale inverter maker Satcon announced that it has filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. The petitions were filed in the U.S. Bankruptcy Court for the District of Delaware.
Steve Rhoades, Satcon’s President and Chief Executive Officer, said in a statement, “This has been a difficult time for Satcon. After careful consideration of available alternatives, the Company’s Board of Directors determined that the Chapter 11 filings were a necessary and prudent step, allowing the Company to continue to operate while giving us the opportunity to reorganize with a stronger balance sheet and capital structure. Our goal is for Satcon to emerge from bankruptcy reorganization and continue to provide our customers with the quality products that they need.”
The company is hoping to get court approval to continue to conduct business without interruption to minimize any impact on Satcon’s customers and employees. Satcon currently employs 260 people after cutting its workforce by 35 percent in July.
No federal money has been awarded to Satcon but the California Energy Commission (CEC) awarded Satcon, Renewable Energy Services, Sacramento Municipal Utility District (SMUD), and A123 Systems, which also filed for bankruptcy this week, a $2 million grant to develop methods to reduce renewable intermittency in July, according to a release.
According to Bloomberg news, Satcon listed assets of $92.3 million and debt of $121.9 million as of June 30 in the Chapter 11 documents that were filed today in Delaware.
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