Evergreen Solar Files for Chapter 11

The Massachusetts based Evergreen Solar has filed for Chapter 11 bankruptcy. Chapter 11, which allows a company to reorganize, does not necessarily spell the end of Evergreen, but it is a serious blow. The Boston Herald reports that Evergreen Solar has amassed nearly half a billion dollars in debt. Both the Herald and NPR mention the extensive subsidies that were awarded to the company by the state of Massachusetts.

According to the NPR story, the triple whammy of the weak U.S. economy and Chinese competition along side plummeting prices in the solar panel market are largely to blame for Evergreen’s current state. Curt Nickish of WBUR reports that Evergreen’s technology that allows it to make the silicon components cheaper represents the company’s greatest asset.

A story from Bloomberg points out that “Since 2010, Evergreen has been the worst-performing company on the Bloomberg Global Leaders Solar Index.”

While it may be a bit premature to relegate Evergreen to the annals of history, there is not much optimism for a recovery.

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