US solar manufacturer Energy Conversion files for bankruptcy

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 Michigan.

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.