Residents of New Jersey may be familiar with the growth that the solar power industry, as well as other “green” industries, has been seeing across the country. However, a disparity apparently exists in the industry between the installation companies, where business is said to be robust, and the manufacturing end, which is seen as challenged by falling prices. One such business, solar panel developer Konarka Technologies Inc., announced June 1 that it had filed for Chapter 7 bankruptcy.
The company appeared to be doing well, having raised over $150 million in private funding, $20 million in government grants, and announced various developments and projects the company would be overseeing. It isn’t said what exactly caused Konarka’s financial troubles, but falling prices of the products companies like Konarka produce is mentioned as a potential factor. The company has been unable to secure additional funding, and is unable to continue operating under their current financial situation.
Konarka’s doors may not be closed forever, though. While the Chapter 7 bankruptcy filing will liquidate Konarka’s assets in order to repay the company’s creditors, several larger companies — as well as the Chinese government — have expressed interest in acquiring or financing the company. However it will be up to the court and its designated trustee to decide.
This solar panel developer’s Chapter 7 bankruptcy filing may be an example of how a business can struggle despite seeing a boom in their industry. For New Jersey businesses, as well as for businesses across the country, success for some does not always mean success for all. Every business is subject to its own financial situation and potential financial troubles, and anyone may struggle even in the most positive economic position.
Source: Plastic News, “Solar panel maker Konarka liquidating,” Frank Antosiewicz, June 8, 2012