Satcon Technology Corp. (NASDAQ CM:SATC), a provider of utility scale power conversion solutions for the renewable energy market, announced Oct. 17 that the company and its subsidiaries have voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.
“This has been a difficult time for Satcon,” said Steve Rhoades, Satcon’s President and Chief Executive Officer. “After careful consideration of available alternatives, the Company’s Board of Directors determined that the Chapter 11 filings were a necessary and prudent step, allowing the Company to continue to operate while giving us the opportunity to reorganize with a stronger balance sheet and capital structure.”
In conjunction with the filings, Satcon filed a series of first day motions with the court that could allow it to continue to operate while minimizing any impact on customers and employees. Satcon said it expects to obtain consent from its secured lenders to use cash collateral so as to provide the company with continued access to funds to operate its business.
In January, Satcon laid off 140 workers worldwide and closed its Canadian facility as part of a restructuring plan. The bankruptcy filing followed the company’s report to the SEC that it had defaulted on $16 million in debt, according to the Boston Business Journal.
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