As Expected, Evergreen Solar (ESLR) Files For Bankruptcy

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02:48:07 pm on August 15, 2011

I first mentioned in a post in Feb 2010 that Evergreen Solar (ESLR) better cut costs in a hurry or it would be bankrupt within a year.  The company managed to hang on a bit longer than that, but today it’s official.  The company has declared bankruptcy as their shift to manufacture in China was too little too late.  The entire solar sector has taken a hit in recent months and that was the final straw for ESLR. 

While the company will continue its operations, many more employees will get the axe in the US and Europe as the company continues its shift to a China operation. 

CEO El-Hillow commented:

"Chapter 11 will provide Evergreen Solar with the ability to maximize returns for our stakeholders through the proposed sale process. Importantly, we expect to continue our technology development without interruption during Chapter 11 and the sale process. Day-to-day operations will go on as usual as employees carry out their responsibilities and we will continue to pay our suppliers and vendors for goods and services received during this period," Mr. El-Hillow added.

I can’t say I feel sorry for shareholders who lost big in ESLR.  The company has been going down hill for a couple years and it was clear the cost cutting wasn’t happening fast enough.  While there was a small chance they could turn it around, the odds were never good.  This one was a lotto ticket.. a losing one at that. 

 

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