Aug 24, 2011 - US solar cell maker SpectraWatt last week filed for Chapter 11 bankruptcy protection as a result of falling prices within the sector and growing competition from Chinese firms.
The company, a spin-off of Intel Corp (NASDAQ:INTC), has USD 38.7 million (EUR 27m) in debt. It intends to auction nearly all of its assets, valued at USD 33.9 million.
"United States-based manufacturers are under a great deal of stress because of the emergence of manufacturers in China, who receive considerable government and financial support," said Brad Walker, chief restructuring officer and CEO of SpectraWatt. According to him, government support and low production costs in China have allowed Chinese solar power companies to become price leaders in the sector.