Energy Conversion Devices Inc., a company that manufactures
lightweight solar products, has filed for Chapter 11 bankruptcy and plans to
sell off its solar panel unit, according to Bloomberg.
Energy Conversion, an Auburn Hills, Michigan- based
operation, will continue to operate during the bankruptcy process. The sale of
United Solar Ovonic unit and other assets has the approval of creditors.
Energy Conversion solar products are used for rooftops and
buildings. The company has not posted a profit since 2009 as sales to Europe
have slowed significantly.
According to Reuters, Energy Conversion temporarily halted
production and will have to lay-off 500 employees, they have already furloughed
400 employees. About 60 percent of their work force is in
In the bankruptcy filing Energy Conversion listed debt at
$249.1 million with assets at $986.3 million.
In a statement Bloomberg, Julie Hawkins chief executive
officer said, “Our current capital structure and legacy costs are preventing
USO from making the investments necessary for the future of the business with
restructuring through bankruptcy process.”
Bankruptcy allows a business the opportunity to shed some of
their debt. A consultation with a bankruptcy attorney can give the troubled business ideas on how to restructure so they
can continue to operate.
Businesses aren’t the only entities that face financial
troubles, individuals often turn to a bankruptcy
attorney to get relief from their
debts and stop collection efforts. There are many reasons that an individual or
business finds they are drowning in debt, but a bankruptcy attorney can offer them solutions to their problems.