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Satcon's financial demise was caused by increased competition with Chinese companies and decreased demand for solar power installations around the world

It's just not a good week for renewable energy companies. Just one day after A123 Systems filed for bankruptcy, solar company Satcon Technology has now filed for Chapter 11.

Satcon Technology, which is a Boston-based company that develops solar inverters, filed for Chapter 11 bankruptcy protection today as a result of the poor state of the solar power industry as well as financial earnings. It filed its petitions in the U.S. Bankruptcy Court for the District of Delaware.

Satcon's financial demise was caused by increased competition with Chinese companies and decreased demand for solar power installations around the world. 

From 2005-2011, the solar company posted annual financial losses. It also reported losses in the first six months of 2012, and announced that it would reduce its workforce by 35 percent in January. Around that same time, Satcon also mentioned closing a factory in Canada.

"This has been a difficult time for Satcon," said Steve Rhoades, Satcon's president and CEO. "After careful consideration of available alternatives, the company's Board of Directors determined that the Chapter 11 filings were a necessary and prudent step, allowing the company to continue to operate while giving us the opportunity to reorganize with a stronger balance sheet and capital structure. Our goal is for Satcon to emerge from bankruptcy reorganization and continue to provide our customers with the quality products that they need."

Satcon isn't the only solar company to file for bankruptcy. In September 2011, solar panel company Solyndra filed for bankruptcy after receiving a $535 million loan from the U.S. Department of Energy (DOE). After that, a line of other alternative energy companies also filed for Chapter 11 after receiving government loans, such as Beacon Power, a flywheel maker for grid efficiency that received $43 million in 2010, and Ener1, an electric vehicle (EV) battery maker whose EnerDel subsidiary won a $118.5 million grant in 2009. 

Just yesterday, EV battery maker A123 Systems filed for bankruptcy. It was reported that A123 was missing loan payments and finally decided to sell its automotive business assets to Johnson Controls, which is a company that optimizes energy efficiency in car batteries, buildings and electronics. The total value of the transaction was $125 million.

Sources: Washington Post, Reuters, Satcon Technology

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RE: Interesting
By Ringold on 10/18/2012 5:36:22 PM , Rating: 2
Seriously, the US has undergone 40 years of near continuous economic mismanagement. With the middle class more or less defunct, there is no engine of economic growth. Hence the recession.

And yet.. Still doing better than most of Europe! How about that! And the brightest corner of Europe, Germany? Not the socialist paradise most liberals wish it was. Indeed, the picture there is more nuanced, but nuance is one thing you clearly don't have, nor any sense of history. Obama would call JFK, if he were alive, belligerent in foreign policy for daring to be unabashedly pro-American, in bed with the military, and a Tea Party "extremist" for having the crazy notion that tax cuts would create a rising tide that lifted all boats. He'd of called him dangerous for pressing the USSR so hard during the Cuba Missile Crisis; should've just gone to the UN and negotiate to let them have their nukes in Cuba, right? Maybe with UN oversight, right?

But, he was shot, and happened to be a Democrat, so even though the party has completely changed since then, he's a hero for the left, and liberals are too dense to realize the irony because most aren't aware of any true history before Bill Clinton. (And sadly, the youngest liberal trolls online don't even remember Clinton)

That post is a prime example of the problem of out-sourcing independent thought to

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