Solynda 2: Another $30 Million in Taxpayer LossSubmitted by GBAmerica on Fri, 06/29/2012 - 20:22
Solynda 2: Another $30 Million in Taxpayer Loss
Abound Solar to Suspend Operations, Will Seek Bankruptcy
Abound Solar Inc., a U.S. solar manufacturer that was awarded a $400 million U.S. loan guarantee, will suspend operations and file for bankruptcy because its panels were too expensive to compete.
Abound borrowed about $70 million against the guarantee, the Loveland, Colorado-based company said today in a statement. It plans to file for bankruptcy protection in Wilmington, Delaware, next week.
The failure will follow that of Solyndra LLC, which shut down in August after receiving a $535 million loan guarantee from the same U.S. Energy Department program. Abound stopped production in February to focus on reducing costs after a global oversupply and increasing competition from China drove down the price of solar panels by half last year.