« | »

Solar Co. Files Chapter 11, Moves To China

From the Boston Herald:

Evergreen Solar files for bankruptcy, plans asset sale

By Greg Turner And Jerry Kronenberg  |  Monday, August 15, 2011

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…

Nonsense. A lot of those green jobs are filled, however briefly, by SEIU members and other Democrat Party loyalists.

The state is still trying to recoup about $4 million in cash from the Marlboro-based company

Good luck with that.

Evergreen — hurt by lower-cost competition in China and plummeting prices for solar panels — also said it will cut more jobs — 65 layoffs in the United States and Europe, mostly through the shutdown of its Midland, Mich., manufacturing facility. That would leave Evergreen with about 68 workers according to a head count listed in the bankruptcy filing.

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…

So the Massachusetts taxpayers’ dollars is creating jobs, after all. Albeit in China.

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.

Good luck with that, too.

This article was posted by Steve on Tuesday, August 16th, 2011. Comments are currently closed.

10 Responses to “Solar Co. Files Chapter 11, Moves To China”

  1. Right of the People says:

    I’m shocked, shocked I tell you! How could a “green” company be in such trouble? President Obummer told us that green energy is the wave of the future and he would never lie, would he? (sarc off now)

    It’s really telling that even when a company that is as heavily subsidized as this can’t make it. Kind of puts the whole “green” energy BS in a bright spotlight, doesn’t it?

    • River0 says:

      If we could only get Obummer to campaign for Chinese and Japanese business. Their economies would tank in six months and America would be back on top!

      Does anyone notice that he’s the anti-Midas? Every golden thing he touches turns to lead.

  2. untrainable says:

    This may be a silly question, but why is a Massachusetts company funded by Massachusetts taxpayers going for reorganization through a Deleware bankruptcy court? Does Massachusetts not have bankruptcy courts of its own?

    Also, just one more feather in the cap of our president, the walking personification of plague on business. Everywhere Obama has spoken about all the jobs he saved seems to go bankrupt. Coincidence? Yeah, right. That’s the ticket.

    • proreason says:

      A huge percentage of public companies are based in Delaware because of favorable corporate laws in that state. As I recall, they have to have some kind of a presence in Delaware, but it can be trivial, like a PO box or a 1-person office.

    • untrainable says:

      Pro… you can’t be suggesting that this green company wasn’t paying it’s fair share, that they were an evil corporation akin to big oil, big pharma, big bank, wall street, and John Kerry… can you? That would just be wrong. He Heee.

      Thanks for the info.

  3. JohnMG says:

    Change you can believe in?

    I believe I’ll opt for something else.

  4. P. Aaron says:

    ‘Green’ as in ‘moldy’.

  5. Papa Louie says:

    Color blindness could explain why Obama said “green technologies will create the jobs of the future.” He confused green with red. The only jobs the stimulus created are in the red and moving to red China.

  6. GetBackJack says:

    Bovine Scatology. There’s not a da** thing wrong with Solar and everything right with it. As another brick in the wall of energy.

    This isn’t a failure of ‘solar’ it’s a failure of BS business planning.

  7. AmericanIPA says:

    Gosh, those “green jobs” are really transforming our economy aren’t they? Another campaign promise delivered!

« Front Page | To Top
« | »