Another Solar Energy Company Files for Chapter 11
- Posted on February 15, 2012 at 11:48am by
Becket Adams
- Print »
- Email »
Chalk up yet another setback for the solar energy industry.
Energy Conversion Devices (ECD), based in Auburn Hills, MI, has filed for Chapter 11 bankruptcy and intends to sell its assets, including its main subsidiary United Solar Ovonic (Uni-Solar).
“We firmly believe there is a strong and sustainable commercial market for Uni-Solar products,” Julian Hawkins, ECD’s CEO and president, said.
“However our current capital structure and legacy costs are preventing [Uni-Solar] from making the investments necessary for the future of the business without restructuring through the bankruptcy process,” she said.
The solar roofing manufacturer employs 750 workers, 60 percent of which are in Michigan. The staff will “remain active employees” during the sales process though some have been furloughed, said company spokesman Michael Schostak.
The company has brought on the investment banking firm Quarton Partners to help manage the sale of its assets, which it hopes to be completed in about 90 days. ECD has approximately $145 million in cash and short-term investments to enable it to operate through the bankruptcy proceedings and, surprisingly enough, will not need debtor-in-possession financing, according to Katherine Yung of the Detroit Free Press.
“The bankruptcy follows an unsuccessful effort by ECD to find additional capital. In November, the money-losing company suspended manufacturing to cope with high inventory levels and announced the layoffs of 500 employees,” Yung writes.
“Its sales have suffered from cutbacks in solar energy incentives in Europe and a worldwide glut of solar panels. Analysts also said the company’s technology was no longer competitive,” Yung adds.
As many Blaze readers know, the solar panel industry is going through a “consolidation” that has claimed several companies including: Solyndra, Amonix Inc., and Evergreen Solar.
As a direct result of the ECD bankruptcy filing, the company’s shareholders will take a serious hit.
The company said it “does not expect to generate proceeds sufficient to satisfy all of the company’s pre-existing obligations to its creditors.” Furthermore, it expects that “no distributions will be made to holders of its common stock unless it realizes a greater-than-expected value from the sale of its assets.”
Its common stock will be extinguished once its bankruptcy plan has received court approval, according to the report.
“Long before it turned its focus to solar energy, ECD had pioneered nickel-metal-hydride batteries. The company was founded in Detroit by Stanford Ovshinsky, a famous local scientist and inventor, 51 years ago,” Yung writes. “In 1990, ECD established United Solar Ovonic, which eventually became a leading producer of thin-film solar laminates for industrial and commercial buildings around the world.”
In fact, Uni-Solar was so successful that it actually expanded and opened four Michigan plants. However, since 2009, the company has been in decline — some think because of “increasing competition.”
ECD has lost more than $765 million in the last two years.
Popular Stories
MSNBC Host Snaps in Heated Segment: ‘What in the World Is Riskier Than Being a Poor Person in America?’ 683 Comments
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 647 Comments
‘Jumah at the DNC’ Speaker: ‘Muslims Visited America Prior to Columbus’ & ‘It Was a Muslim’ Who Guided Him to the ‘New World’ 523 Comments
Obama: RNC Like Watching ‘Black-and-White TV’ Because Romney ‘Did Not Offer a Single New Idea’ 361 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 314 Comments
Faith
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 170 Comments- Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More
- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 208 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 146 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 300 Comments
Scathing New Ad Capitalizes on Rep. Ryan‘s ’Fading Obama Posters’ Remark 124 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 170 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (64)
Micmac
Posted on February 15, 2012 at 1:56pmI was involved in both active and passive “solar” design for structures back in the mid 1970s. I have followed it since then. There is a viability in certain conditions, but all-in-all the systems today aren’t much better than the systems we either worked with or developed for our projects. The place where I found solar designs to be effective is for the heating of swimming pools. Some very nice electric bill savings.
@ MIKEV5
You are totally correct about how over the last 3-4 decades a substantial improvement in efficiency is non-existent. Where I see the improvement is in the quality of materials that will not deteriorate as quickly. Back then, and still today, I feel there is a diminishing return in improvements.
The USA cannot compete in manufacturing of solar collectors against the stacked deck of China, so why even try?
NoBama 2012
Report Post »D-Fence
Posted on February 15, 2012 at 4:12pmI believe, as part of a long term energy strategy, we should have solar power for our own indiidual needs. This would prevent national security issues like we have today. Having said that, You’re corect. There’s no way we can compete on the playing field with China right now. I say drill baby drill, push the keystone pipeline, “F” the middle east,….
NOBAMA 2012 Santorum 2012
Report Post »SgtB
Posted on February 15, 2012 at 4:55pmSolar cells are worthless. Solar stirling engines are more efficient and only require a mirror to be washed eery now and then. The stirling engine itself is internally lubricated and does not the lubrication changed like an IC engine does because there is no combustion blowing carbon and past the rings and into the oil. A single solar dish can generate 25kW of power. Enough to power 5 average homes or 2/3 of one of Al Gore’s homes.
Report Post »Jaycen
Posted on February 15, 2012 at 5:58pmThanks for the insight, MICMAC.
I’m not specifically in that industry, but here’s my story:
I helped a manufacturer of solar panel frames start up a machine. While on-site, the Product Manager told me they had to get panels to their customer as fast as they could, because everyone know solar was a scam, and it’d only be about 2 years before everyone caught on. They had to get in while there was still government money in it and then get out, quick.
You see? There are plenty of unscrupulous company owners willing to help defraud their fellow Americans and turn a quick buck in the process. Our tax dollars helped that company launch itself into a new manufacturing process with new equipment. Fortunately for THEM, they can retool that equipment and produce something else. Unfortunately for us, we won’t be getting a royalty for every foot of product they produce to help pay back our “investment”.
Thanks, Progressive central planners!
Report Post »Tickdog
Posted on February 15, 2012 at 1:51pmlol!
Report Post »TemayElbor
Posted on February 15, 2012 at 1:35pmWhere is the TRUTHERS’ claim of economic recovery? Is this solar bankruptcy one of those???????
Up on your feet AMERICA and fight for your nation’s recovery. Our government is failing us.
Report Post »Morris
Posted on February 15, 2012 at 1:52pmIf the CEO of this company was a Fundraiser for Barack Hussein Obama,Obama would give his company hundreds of Millions of Dollars!
Report Post »“Green Jobs” Puts Green money into the pockets of Barack Hussein Obamas Fundraisers!
Impeach Dictator Obama before he destroys our America!
babylonvi
Posted on February 15, 2012 at 1:31pmFrom a user standpoint, solar is still the best SHTF item to have available. Every prepared family should have at least 750-100 what-hours of solar power for led lighting, battery charging and communications available for a serious ‘event’. If more people would realize this, the solar industry would be doing fine. But the Sheeple all think the ‘Government’ will be at their door come morning with food water and ‘entertainment’. Those will be the casualties should such an event occur. For all you in the big cities, all I can say is get out or R.I.P.
Report Post »Micmac
Posted on February 15, 2012 at 2:01pmBut if the SHTF and you had collectors on your roof, how long would it be before they were ripped off unless you had your machine gun bunker active 24/7? But in concept you are correct…be prepared because things seem to be not getting any better.
NoBama 2012
Report Post »SageInWaiting
Posted on February 15, 2012 at 5:12pmYa, I agree that being able to be self-sufficient would be nice. I keep solar, wind, and hydro in mind as options, as well as geo-mass housing. (There was a limestone quarry dug into a cliff face not far from where I grew up; 50F deep inside regardless of the “outside” temp.) The problem is procurement cost and maintenance once they’re needed. EMP survivability must now also be considered. Solar and wind output fluctuates and voltage must be regulated; you can’t directly pump it into a battery. With prices in the _multiple_ $10K for generation, voltage stabilization and conversion electronics, and storage, the “common” person can’t afford it, especially with a government bent of our economic destruction.
Report Post »dascribner
Posted on February 15, 2012 at 6:38pmIf the SHTF a good place to be is having an RV equipped with solar panels and head for a sunny area.
Report Post »TexBork
Posted on February 15, 2012 at 1:25pmSolar company bankruptcies are the wave of the future! Thanks Green Energy!
Report Post »lacabeza
Posted on February 15, 2012 at 1:23pmIs “legacy costs” stealth code words for “union labor”?
Report Post »Rickfromillinois
Posted on February 15, 2012 at 1:19pmSo what’s the problem? I’m sure that the White House can come up with a billion or two in order to get them back on their feet for a year or so.
Report Post »Outlaw_Josey_Wales
Posted on February 15, 2012 at 1:08pmSolar companies can’t see the light at the end of the tunnel.
Report Post »FearlessInfedel62
Posted on February 15, 2012 at 2:26pmYou summed it up perfectly…Bravo!
Report Post »Slayer
Posted on February 15, 2012 at 1:08pmIs there anyone out there, including the Blaze, who could get a list of all the solar and wind energy companies failing?
Report Post »Mikev5
Posted on February 15, 2012 at 1:05pmAnyone with half a brain knew solar was a failure it’s only been out there for 30 or more years if it was a viable solution it would have moved stocks back then it’s no better than back 30 years ago if it hasn’t made it in 30 years why do people think its winner now?
You never make your money back from solar it’s a bust sounds good NO electric BILL’s really it figgin cost 20 to 30 thousand dollars to install on your home how many years till it pays off get a brain America. Rebates what a joke who do you think is footing the bill you do with high tax’s and city fee’s you morons.
Report Post »Temporal
Posted on February 15, 2012 at 1:02pmIf you remove the tax and carbon camouflage, it’s easy to see that solar companies are not going broke due to Chinese competition as much as the fact that photo voltaic (“PV”) panels are not economically viable in areas where commercial power is available.
If you dig deep into the bankruptcy papers, the companies will invariably blame the lack of planned government subsidies. They thought Obama would impose European-style subsidies in the U.S., which hasn’t happened (yet).
With present technology, the true break-even point is in excess of 20 years, or greater than the service life of the system. Also, many folks and most politicians overlook the high cost of the sub-systems that are required to tie your system into the commercial grid. The PV panels themselves are cheap compared to the $10000 grid tie inverters that are required before you can sell your excess power back to the utilities.
Such is the true cost of appearing to be “green” and why the PV companies are dropping like flies. Both solar thermal and passive technologies are FAR more cost-effective.
Report Post »11:11
Posted on February 15, 2012 at 12:45pmi always entertained the thought of buying shares for solar panel companies and thankfully never got around to it, though i feel bad for the ones that did and lost alot, btw how’s that hope and slave working out for you obama lovers?
Report Post »USPATRIOT101
Posted on February 15, 2012 at 12:36pmbarack, Al Gore and their other bandits made their cash.
Report Post »kfalcon22000
Posted on February 15, 2012 at 12:47pm…and another one bites the dust…
Report Post »Link8on
Posted on February 15, 2012 at 12:52pmAn old friend of mine working there complained about the Union labor rules they had.
Report Post »USPATRIOT101
Posted on February 15, 2012 at 1:35pmLink that doesn’t surprise me. A company struggling to get off the ground has the huge burden of unions and their games is headed for failure.
Report Post »dmerwin
Posted on February 15, 2012 at 12:19pmOur president really supports greening of the world, right?
Report Post »The corresponding figures (same sources) for a Boeing 747-400 (used for long distance international flights) are:
Distance: 5556 km
Fuel used: 59.6 tonnes
I got this info from the net at “Carbon Independent Aviation sources”
http://www.carbonindependent.org/sources_aviation.htm
So our Pres, on the vacay to Hawaii, sends the wife and kids out first and has the jet come back to the country and pick him up. Basically double the mileage DC to Honolulu and we get an estimate of 240 TONS of jet fuel. 480,000 pounds of fuel for one vacay for the pres. 60,000 gallons of gas will power my Escape for a very long time.
I’m tired of hearing this crap while watching his actions.
Rational Man
Posted on February 15, 2012 at 12:18pmAnd Obama is not backing off this insanity either!!!
Obama’s budget doubles down on renewable energy
By Andrew Restuccia
President Obama’s fiscal 2013 budget request doubles down on renewable energy amid growing Republican attacks on the administration’s green agenda.
The budget request, which was sent to Congress Monday, increases investments in renewable energy and energy efficiency at the Department of Energy.
http://thehill.com/blogs/e2-wire/e2-wire/210295-obamas-budget-doubles-down-on-renewable-energy
The amount of money proposed in the new “budget” for the green agenda is staggering. Especially considering the financial disaster we already have. Read the article and be depressed………
Report Post »evaluator
Posted on February 15, 2012 at 2:25pmFortunately, the budget for the United States originates in the House of Representatives. (according to the Constitution) The HMFIC can go blow smoke up the fat girls butt!!!
Report Post »SamIamTwo
Posted on February 15, 2012 at 12:11pm“consolidation”?
What, over…who is the buyer?
I guess I missed it?
Report Post »TheObamanation
Posted on February 15, 2012 at 12:09pmThe bankruptcy follows an unsuccessful effort by ECD to find additional capital … who else would be dumb enough to pour money into this B$ ? … Can we just drill for oil now ?
Report Post »smithclar3nc3
Posted on February 15, 2012 at 12:13pmAt least this company proves that solar companies can go bankrupt without costing tax payers hundreds of millions through unpaid loans.
Report Post »SamIamTwo
Posted on February 15, 2012 at 12:18pmI think House today discusses and votes on the rules to debate offshore drilling for gas and oil…
Congress needs to streamline their processes…takes too long to do anything. Debating on the rules…pffft.
Report Post »HorseCrazy
Posted on February 15, 2012 at 12:09pmI feel for the workers and private investors. Solar power just isnt going to work on a big scale. I have a solar powered electric fence in wa state. how well do we think that is working with the constant grey skies
Report Post »Marnin
Posted on February 15, 2012 at 12:05pmTheir CEO must not have bundled enough donations to the Obama campaign to get “special” Federal assistance.
Report Post »Baddoggy
Posted on February 15, 2012 at 12:03pmBarry needed some more money for his re-election campaign? One billion not enough?
Return to the Constitution to end this BS
Report Post »Ron paul 2012
USPATRIOT101
Posted on February 15, 2012 at 1:56pmJefferson
Report Post »Darmok and Jalad at Tanagra
Posted on February 15, 2012 at 11:59amI can hear Elton John singing now “Don’t let the sun, go down on me”.
Report Post »TheObamanation
Posted on February 15, 2012 at 12:12pmHe’s probably working on a new Candle in the Wind release …
Report Post »conservatype
Posted on February 15, 2012 at 11:57amThanks once again to the Democrats for taking such good care of our tax dollars. And you wonder why anyone with a brain is reluctant to allow the Dems to raise taxes?
Report Post »muddpuddle
Posted on February 15, 2012 at 11:57amSolar power is best used for tanning. You can even buy tanning lotion. It smells like coconut, and buy purchasing it, you help create jobs.
Report Post »13th Imam
Posted on February 15, 2012 at 11:54amAnother feather in Barry’s screw America cap. His hat is starting to look like an Indian war bonnet.
Report Post »Drum Man
Posted on February 15, 2012 at 11:51amWhat a surprise. Ask Al Gore for some capital….
Report Post »