Thursday, September 01, 2011

Solar Companies Go Bankrupt

From: Fox News


“Evergreen Solar files for bankruptcy, plans asset sale

By Greg Turner And Jerry Kronenberg
Monday, August 15, 2011 - Updated 2 weeks ago

Evergreen Solar Inc., the Massachusetts clean-energy company that received millions in state subsidies from the Patrick administration for an ill-fated Bay State factory, has filed for bankruptcy, listing $485.6 million in debt.

Evergreen, which closed its taxpayer-supported Devens factory in March and cut 800 jobs, has been trying to rework its debt for months. The cash-strapped company announced today has sought a reorganization in U.S. Bankruptcy Court in Delaware and reached a deal with certain note holders to restructure its debt and auction off assets.

The Massachusetts Republican Party called the Patrick administration’s $58 million financial aid package, which supported Evergreen’s $450 million factory, a ‘waste’ of money.

‘The bankruptcy of Evergreen Solar is another sad event for the Massachusetts company and highlights the folly of the Patrick-Murray Administration which has put government subsidies into their pet projects instead of offering broad based relief to all Bay State employers,’ said Jennifer Nassour, head of the state GOP.”

To cut costs, Evergreen shifted some of its production to Wuhan, China, last year. That joint venture will remain operating subject to financing talks with Chinese investors.

In January … Evergreen announced it would close the Devens factory ….”

“Evergreen warned investors back in April that it was burning through cash because of slow sales, falling solar-panel prices and weak proceeds from the sale of Devens factory assets.

‘Chapter 11 will provide Evergreen Solar with the ability to maximize returns for our stakeholders through the proposed sale process,’ El-Hillow said in a statement.

‘Importantly, we expect to continue our technology development without interruption during Chapter 11 and the sale process.’

But Evergreen shareholders are expected to receive ‘no distributions’ from the asset sales after creditors are repaid. (In other words, they will lose ALL of their investment!—my addition)

Shares of Evergreen, which are in danger of delisting from the Nasdaq Stock Market, plunged 57 percent today to 18 cents. The company launched in 1994 and went public in 2000.

The list of top creditors in today’s bankruptcy filing lists a $1.5 million debt to MassDevelopment, the quasi-public state economic development agency.”


“Green Investing
August 28, 2011
by SustainableBusiness

SpectraWatt Files for Bankruptcy, Second U.S. Solar Company This Month

New York-based solar company SpectraWatt Inc. filed for bankruptcy protection last week—the second US solar company to do so this month.

Like Evergreen Solar which filed earlier this month, SpectraWatt blames increasing competition from low-cost manufacturers in China and the falling prices of solar panels, caused by an oversupply on the market and a dip in the pace of solar installations.”

“According to Bloomberg, SpectraWatt owes $38.7 million in debt and plans to auction off all its assets, valued at $33.9 million.

Walker says the market is likely to be flooded with the assets of failing solar companies in the next three to six months, so SpectraWatt plans to move fast, with an auction on September 28. (He expects even more solar companies to FAIL!?—my addition)

Like Evergreen Solar, SpectraWatt was once a much-hyped solar upstart. The company spun off from Intel Corporation (Nasdaq: INTC) in 2008 and initially planned to locate in Oregon, before landing in Hopewell Junction, New York in 2009.

The company began shipments from the New York facility in 2Q10, but shut down operations in April 2011.

Intel and Goldman Sachs were the main investors in two funding rounds that topped more than $90 million.”


“Solar-panel maker that received $535 million government loan files for bankruptcy

From Our Press Services
Memphis Commercial Appeal
Posted August 31, 2011 at 3 p.m.

WASHINGTON—A California solar-panel manufacturer once touted by President Barack Obama as a beneficiary of his administration’s economic policies—and the recipient of a $535 million federal loan—is laying off 1,100 workers and filing for bankruptcy. (GOVERNMENT acting as a bank is NOT a wise idea. The federal government HAS NO Constitutional authority to be a bank!—my addition)

Solyndra LLC of Fremont, Calif., is the third solar company to seek bankruptcy protection this year. (This month?—my addition) Officials said today that the global economy as well as unfavorable conditions in the solar industry (Such as NO DEMAND!!!—my addition) combined to force the company to suspend its manufacturing operations.”

“Obama toured the company’s facilities last year to highlight the economic benefits of the solar industry and an economic stimulus package that provided seed money for solar startups. At the time, the president said that the new plant being built by Solyndra would employ 1,000 workers. (In the long run GOVERNMENT CAN NOT create and CAN NOT control supply and demand!!!—my addition)

In a blog posting, Energy Department spokesman Dan Leistikow said that Solyndra was a once promising company that had increased sales revenue by 2,000 percent in the past three years.” (And yet never made a profit?—my addition)

“‘We have always recognized that not every one of the innovative companies supported by our loans and loan guarantees would succeed, but we can’t stop investing in game-changing technologies that are key to America’s leadership in the global economy,’ Leistikow said.” (YES, you can! It is NOT the responsibility of government to loan money to private enterprise companies!!! Even if it were, WE ARE $14.6 trillion in DEBT!!!—my addition)

The federal government CAN NOT control supply and demand over the long run. These bankruptcies should be another of a long string of wake-up calls to the American people. Without doubt, the Obama Administration wants to change America. However, it is NOT change anyone with any common sense should place their hope in. GOVERNMENT IS NOT A SAVIOR. BARACK HUSSEIN OBAMA’S GOVERNMENT IS EVIL!!!

And I don’t proclaim that lightly. For I believe the following: “WOE TO THOSE WHO CALL EVIL GOOD AND GOOD EVIL” Isaiah 5: 20a (NIV)

“And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.” (Last sentence of the Declaration of Independence)

It is time, it’s past time to RESTORE THE CONSTITUTION!!!
It is time, it’s past time to RESTORE THE CONSTITUTION!!!
It is time, it’s past time to RESTORE THE CONSTITUTION!!!

It is time, it’s past time to OBEY THE CONSTITUTION!!!
It is time, it’s past time to OBEY THE CONSTITUTION!!!
It is time, it’s past time to OBEY THE CONSTITUTION!!!

It’s time, it is past time to TAKE BACK THE NATION!!!
It’s time, it is past time to TAKE BACK THE NATION!!!
It’s time, it is past time to TAKE BACK THE NATION!!!