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