Jan. 24 (Bloomberg) -- Evergreen Energy Inc., a developer of alternative fuel products, filed for bankruptcy protection, saying it was impossible to maintain operations with a lack of financing.
The company listed assets of about $240 million and debt of $25 million in Chapter 7 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. Chapter 7 proceedings let companies liquidate their assets while being protected from creditors.
Evergreen “remains unable to obtain additional financing and, given its current financial condition, there is substantial doubt that the company will be able to continue operations,” Evergreen said in a Jan. 13 filing with the U.S. Securities and Exchange Commission.
The company was notified by its partner in a joint venture in China that both had to raise from $40 million to $50 million for design and construction of a so-called K-Fuel facility in China to meet an agreement signed by the Chinese parter with a coal mining company on Dec. 22, 2011, according the SEC filing.
Evergreen’s bankruptcy follows the failure of at least two U.S. government-backed renewable energy companies. Solar panel maker Solyndra LLC and energy storage company Beacon Power Corp. filed for bankruptcy last year after receiving government loan guarantees.
Beacon, based in Tyngsboro, Massachusetts, sought Chapter 11 protection on Oct. 30 in Delaware, listing assets of $72 million and debt totaling $47 million, including $39.1 million owing on a government-guaranteed loan. Beacon built a $69 million facility with 20 megawatts of balancing capacity in Stephentown, New York, funded mostly by a U.S. Energy Department loan. The company is set to auction assets next month.
Solyndra, which received $535 million in government loan guarantees, is proceeding with court-approved auctions of its core assets after failing to draw any offers to continue operating the company.
The company, based in Fremont, California, sought Chapter 11 protection Sept. 6. Two days later its offices were raided by the Federal Bureau of Investigation. The solar-panel maker listed about $854.1 million in assets and about $867.1 million in debt in court papers filed Oct. 31.
The case is In re Evergreen Energy Inc., 12- 10289, U.S. Bankruptcy Court, District of Delaware (Wilmington).
--With assistance from Michael Bathon in Wilmington, Delaware. Editors: Fred Strasser, Mary Romano
To contact the reporter on this story: Dawn McCarty in Wilmington at firstname.lastname@example.org.
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