Nov 1, 2011 - US energy storage systems provider Beacon Power Corp (NASDAQ:BCON) yesterday said that it had filed for bankruptcy protection on Sunday aiming to restructure its overheads, seek investors and settle its loan obligations.
The company's president and CEO, Bill Capp, said filing for Chapter 11 protection was necessary to enable Beacon to keep running its business. The company was operating at a loss and its access to investments was limited due to the uncertain economic and political conditions, Department of Energy (DOE) loan terms and recent delisting from the Nasdaq.
In August, Beacon received USD 43 million (EUR 31.3m) loan guarantee from the DOE for its 20 MW flywheel plant.
Capp rebuffed any similarities between Beacon and Solyndra, which also filed for bankruptcy after receiving a DOE loan, except for the financial difficulties that both companies experienced.
Beacon's guarantee was given for its innovative plant, while Solyndra got USD 535 million loan guarantee to produce solar panels amid declining market prices, Capp said. He added that Beacon's plant was running at full capacity and generating revenue, and the company plans to keep the plant operational and its personnel on the job, while Solyndra closed its plant and laid off staff after going bankrupt.