News / Business
Evergreen Energy files of bankruptcy amid financing troubles
Evergreen Energy Inc., a company that develops alternative fuel products has filed for bankruptcy citing that they cannot get enough financing to continue operations, according to Bloomberg.
According To Evergreens Chapter 7 filing the company has assets totaling $240 million with debt liabilities of $25 million, as reported by Bloomberg.
Under Chapter 7, Evergreen will liquidate their assets while under debt protection. Bankruptcy attorneys may suggest Chapter 7 bankruptcy to companies that cannot get financing to continue operations. Once the assets are sold off, creditors will be given some of the proceeds and the business will be dissolved.
Evergreen joins two other alternative energy companies in bankruptcy. This year saw the financial collapse of Solyndra, a solar panel manufacturer and Beacon, an energy storage company.
Solyndra went bankrupt after they received a $535 billion dollar loan from the federal government. Solyndra attempted to get enough financing to continue operations but were unable to do so.
Bankruptcy is sometimes the only option for a business. While some can enter into a restructuring plan and continue operations other must close up shop. Bankruptcy is a tough decision, but a bankruptcy lawyer can detail the pros and cons for the troubled business.
It can be difficult to decipher the different bankruptcy structures. A bankruptcy attorney will know which structure will work best the needs of the business based on their total assets and debts owed.
According To Evergreens Chapter 7 filing the company has assets totaling $240 million with debt liabilities of $25 million, as reported by Bloomberg.
Under Chapter 7, Evergreen will liquidate their assets while under debt protection. Bankruptcy attorneys may suggest Chapter 7 bankruptcy to companies that cannot get financing to continue operations. Once the assets are sold off, creditors will be given some of the proceeds and the business will be dissolved.
Evergreen joins two other alternative energy companies in bankruptcy. This year saw the financial collapse of Solyndra, a solar panel manufacturer and Beacon, an energy storage company.
Solyndra went bankrupt after they received a $535 billion dollar loan from the federal government. Solyndra attempted to get enough financing to continue operations but were unable to do so.
Bankruptcy is sometimes the only option for a business. While some can enter into a restructuring plan and continue operations other must close up shop. Bankruptcy is a tough decision, but a bankruptcy lawyer can detail the pros and cons for the troubled business.
It can be difficult to decipher the different bankruptcy structures. A bankruptcy attorney will know which structure will work best the needs of the business based on their total assets and debts owed.
