Just eight months after Intel spin-off SpectraWatt announced its plans to lay off most of its workforce, it seems that the company has joined the ranks of Evergreen Solar and has filed for protection from its creditors under Chapter 11 of the US Bankruptcy code.
According to the Times Herald-Record, SpectraWatt filed Chapter 11 at the US Bankruptcy Court in Poughkeepsie on August 19 and is asking the courts for permission to auction off millions of dollars’ worth of its assets in September. The petition lists nearly US$34 million in assets and more than US$38 million in liabilities.
According to the report, SpectraWatt is claiming that vendor disputes, combined with competitive pressure from countries with higher subsidies and lower costs of production led to a decrease in demand for its solar modules.
The Times Herald-Record noted that Brad Walker, CEO and chief restructuring officer for SpectraWatt advised in court papers that the company had been looking since late last year to sell itself and settle with creditors. However, it was not able to complete the necessary agreements and made the choice to file for bankruptcy protection.
“Due to various operational issues, disputes with vendors and others, and most recently, deteriorating market conditions in the solar cell industry, the Debtor has idled its manufacturing facility, closed its operations in Oregon, retained only a skeleton staff, and has been marketing its assets for sale,” he said.