Failed Solar Energy Company Abound Blames China for Bankruptcy

Executives for Longmont, Colorado-based solar panel producer Abound blames China for their bankruptcy instead of the Department of Energy loan program.

Abound testified before the House Oversight and Government Reform Committee, Wednesday. Abound CEO, Craig Witsoe, told the committee, that “aggressive price cutting” utilized by Chinese companies along with a $35 billion in government subsidies contributed to the company’s demise. The predatory pricing practices of the Chinese caused the price of solar panels to drop by 50 percent.

Abound was awarded a $700 million federal loan guarantee but only received $70 million of those funds through the loan program. The remainder of the loan was refused in order to protect taxpayers from the failing solar industry.

Several solar companies have declared bankruptcy in the past year, causing many to question the need to subsidize green energy. The failure of solar energy companies like Abound and Solyndra has been used as political ammunition against President Obama.

Industries can become insolvent for a variety of reason and cannot be solely attributed to one thing. When a company becomes insolvent they must turn to a bankruptcy attorney to help reduce or eliminate their debts. In many instances, a company can return to profitability after going through a structured bankruptcy.

Bankruptcy lawyers give both individuals and businesses opportunity to get protection from collection activities and will develop a repayment plan that will satisfy their creditors. A bankruptcy attorney will evaluate the filer’s finances and recommend the best course of action so the debtor can once again become solvent.