Yet another solar firm has filed for bankruptcy protection. NovaSolar Inc. filed for Chapter 11 debt protection in a San Jose court last Friday.
NovaSolar arose out of the ashes of another defunct solar firm, OptiSolar. The new firm used assets such as intellectual property and management from OptiSolar, leaving many in the financial industry to wonder if NovaSolar would survive.
They moved their headquarters to Hong Kong, but left their research and development department in San Jose.
NovaSolar touted their use of silicon based solar film that would offer the lowest cost per kilowatt of other solar companies and said they would employ 300 people by 2011. But the company has not grown.
In February, the company let go 52 of their 60 employees and failed to pay the remaining employees several months of salary. The employees filed a judgment against the company seeking lost wages.
The bankruptcy attorney representing the firm listed their assets at $6 million with their liabilities totaling $14 million.
NovaSolar now joins numerous other solar energy firms Solyndra LLC, Evergreen Solar Inc., Energy Conversion Inc., and Solar Trust of America LLC in bankruptcy court.
In these tough economic times, numerous businesses and individuals find they need relief from their debts. When they can no longer pay their creditors, a bankruptcy lawyer can offer them a number of solutions through a structured bankruptcy.
Whether the indebted files for Chapter 11, Chapter 7 or Chapter 13 depends on the recommendations of their bankruptcy attorney. Regardless of the filing that is chosen, a bankruptcy gives the troubled business or individual a chance to reduce or eliminate some of their liabilities, allowing them to make a new start.