Oct 17, 2012 - US solar inverter maker Satcon Technology Corp (NASDAQ:SATC) and its subsidiaries have filed for Chapter 11 bankruptcy protection, the company said today.
The filings were made with the US Bankruptcy Court for the District of Delaware.
President and chief executive Steve Rhoades said that Satcon's board had decided that the move was "necessary and prudent", so that the company can reorganise, while continuing to operate. He added that the aim was for Satcon to exit bankruptcy restructuring and keep providing products to its customers.
Satcon has, along with the bankruptcy filings, submitted a number of first day motions that will enable it to do business without interruption, subject to approval by the court. The company hopes that its secured lenders will allow it to use cash collateral, providing it with continued access to funds to run the business.
The announcement comes hot on the heels of yesterday's news that another US alternative energy company, lithium ion batteries maker A123 Systems (NASDAQ:AONE), has sought Chapter 11 bankruptcy protection.