Loss-ridden Evergreen Solar Inc. on Monday announced that it filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy code.
Evergreen (Marlboro, Mass.), a manufacturer of solar cells, said it would cut about 65 jobs in the U.S. and Europe as part of reorganization activities connected to the bankruptcy filing. The reorganization includes suspension of operations at the company’s filament facility in Midland, Mich., Evergreen said.
Evergreen said it expects to continue manufacturing operations at its facility in Wuhan, China, depending on market demand while the company engages in discussions with investors in China regarding possible changes to that operation and its sources of financing, including the possibility of transitioning its operations to the company’s new industry standard wafer technology.
Evergreen said it entered into a restructuring support agreement with holders of 70 percent of the company’s 13 percent convertible senior secured notes. Evergreen said it was considering selling some of its assets, including its wafer technology assets.
As part of the restructuring, an entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with Evergree, the company said. ES Purchaser will serve as a “stalking-horse” and provide a “credit-bid” for assets being sold, Evergreen said.