Bloomberg News

Abound Solar Files Bankruptcy With Some U.S.-Backed Debt

July 02, 2012

Abound Solar Inc., a solar-module maker with $70 million in debt guaranteed by the U.S. government, filed to liquidate.

Abound, based in Loveland, Colorado, has more than $100 million each in debt and assets, according to a petition filed in U.S. Bankruptcy Court in Delaware. The company filed under Chapter 7 of the U.S. Bankruptcy Code, which is typically used by companies that plan to shut down and liquidate.

In 2010, the company said it won a repayment guarantee from the U.S. for as much as $400 million in loans. Such guarantees typically mean the U.S. will pay off the debt if the borrower cannot. Abound used the backing to borrow $70 million, the Energy Department said in a June 28 statement.

“When the floor fell out on the price of solar panels, Abound’s product was no longer cost competitive,” Damien LaVera, an Energy Department spokesman, said in a statement on the agency’s website.

Abound’s bankruptcy follows Solyndra LLC’s failure last year after receiving a $535 million loan guarantee.

The case is In Re Abound Solar, Inc, 12-11972, U.S. Bankruptcy Court for the District of Delaware (Wilmington).

To contact the reporters on this story: Steven Church in Wilmington, Delaware at schurch3@bloomberg.net; Christopher Martin in New York at cmartin11@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus