Beacon, Another Green Energy Company Files for Bankruptcy

The Beacon Power Company, who received a loan from the Department of Energy, has declared bankruptcy. This is the second alternative energy company to file for debt protection, just last month a solar panel manufacturing company, Solyndra filed for bankruptcy, they also received loan guarantees from the DOE along with stimulus money.

The company, based in Massachusetts, filed for Chapter 11 bankruptcy protection listing assets of $72 million with liabilities of $43 million. Businesses and individuals deep in debt in many circumstances have no other alternative than to hire bankruptcy attorneys to file for debt protection.

The company was developing a new technology that would allow the nation’s electric grid to store energy. They make flywheel energy storage systems used to keep power frequency steady on electric grids by absorbing excess power and returning it when needed, according to NPR.  

Beacon’s website stated that they future financial prospects were strong, but capital investments intended to grow the business have been intense and have contributed to operating costs.

While Solyndra, chose to cease operations altogether, Beacon has filed to reorganize their business and continue operations. Companies deeply in debt can speak with a bankruptcy lawyer to see if they qualify for reorganization. For some companies, reorganization is simply not possible and they must liquidate assets.

When a business or individuals find that they are in over their heads and need debt relief, a qualified bankruptcy attorney will be able to explain the different available structures.