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发帖数: 29846 | 1 By JACQUELINE PALANK
Renewable-energy company Satcon Technology Corp. SATC -72.36% filed for
Chapter 11 bankruptcy reorganization Wednesday.
Steve Rhoades, Satcon's president and chief executive, said the Chapter 11
filing follows "a difficult time" for the cash-crunched company, which
supplies the devices that allow renewable-energy producers to convert their
energy into grid-connected electrical power.
Satcon said it has been talks with lender Silicon Valley Bank since June to
avoid falling out of compliance with its secured loan and to seek additional
financing. However, the lender declared Satcon in default on Oct. 9, at
which time it refused to advance more than $250,000. As a result, the
company said it didn't have enough cash to make an Oct. 1 payment to its
noteholders, another event of default.
Mr. Rhoades said the Chapter 11 filing will allow the company to continue
operating while it works to boost its liquidity. Earlier this year, the
company already took the step of reducing its global work force by half by
closing a Canadian manufacturing facility and "resizing" its operations in
Europe, China and the U.S.
"Our goal is for Satcon to emerge from bankruptcy reorganization and
continue to provide our customers with the quality products that they need,"
he said Wednesday in a statement.
Satcon said it expects that, subject to court approval, its secured lenders
will let it draw on the cash collateral securing their claims in order to
fund its continued operations.
The Boston-based company says it provides the "building blocks" for solar-
energy systems, designing utility-grade power conversion solutions for
renewable energy projects throughout the U.S, Canada, Western Europe and
China.
In a Securities and Exchange Commission filing from August, Satcon said its
total revenue for its June-ended quarter declined to $23.7 million from $45.
5 million a year earlier. The company, which has incurred losses for the
past five years, blamed its shrinking revenue on lower sales in Europe,
where governments have eliminated subsidies for solar-power projects.
Satcon is the latest solar company to run into trouble following such
industry-wide challenges as the loss of European subsidies, increasing
competition from Chinese companies and the phasing out of U.S. government-
backed programs that encouraged solar power. Since 2011, numerous solar
companies have sought court protection, including federally backed loan
recipients Solyndra LLC and Abound Solar Inc.
In its bankruptcy petition, filed with the U.S. Bankruptcy Court in
Wilmington, Del., Satcon listed $92.3 million in assets and $121.9 million
in debts as of June 30.
Satcon has hired the law firm Greenberg Traurig LLP to represent it in its
Chapter 11 case, numbered 12-12869. The case has been assigned to Judge
Kevin Gross. |
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