Abound Solar, Federal Loan Recipient, Files for Bankruptcy

The solar industry in America is struggling and yet another company that specializes in solar panel manufacturing has declared bankruptcy. This time it is Longmont, Colorado based Abound Solar Inc.

Abound, like Solyndra, received a loan guarantee from the Department of Energy to aid construction of a solar manufacturing plant. The DOE guarantee was for $400 million, but the company received only $70 million before they stopped receiving payments for failing to meet required milestones.

Abound intended to use the federal loans to build two factories, one in Longmont and one in Indiana, but when the loan was rescinded the company was forced to stop production.

Increased competition from Chinese manufacturers drove down the prices of solar panels by half last year, leaving many stateside companies unable to offer comparable products at low prices.

Abound Solar has now filed for bankruptcy protection and will shut its doors. Now 130 people will lose their jobs and taxpayers are on the hook for an estimated $30 million.

Businesses fail due to unforeseen circumstances. It’s an unfortunate risk that people take when they begin their business, but they have recourse to get out from under their debt, bankruptcy. Under the right plan, prescribed by a bankruptcy attorney, a struggling business owner or individual can stop collection activities and get relief from their debts.

While this is a decision many grapple with, a bankruptcy lawyer can clarify the different debt relief plans and their requirements, which will help you make an informed decision on whether Chapter 13 or Chapter 7 is best for your needs.

When you are swimming in debt, know that a bankruptcy attorney can offer you relief from your debts and harassment from creditors.