Evergreen Files For Bankruptcy
Marlborough-based Evergreen Solar filed for Chapter 11 bankruptcy protection today in Delaware and will lay off 65 United States and European employees in the near term, the company announced.
The company, which shuttered its Devens plant earlier this year and cut 800 jobs, has faced financial difficulties from Chinese competition.
The company did not say in its announcement today how much it owes creditors. But Bloomberg News, citing the bankruptcy protection filing, said the amount is $486.5 million.
Evergreen said it has enough funding in hand to operate in Chapter 11 and will continue to do so, but with additional operational changes to save money, including modified compensation arrangements with directors
The company said it has entered into a restructuring agreement with an entity formed by a group of its senior note holders. That entity, ES Purchaser, is expected to acquire the company's assets, including the company's String Ribbon solar wafer technology, if higher offers are not obtained.
The asset purchase agreement for the sale is subject to approval of the bankruptcy court.
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