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Konarka files for bankruptcy

Organic solar film manufacturer, Konarka Technologies, Inc. is the latest solar company to file for bankruptcy protection under chapter 7 of the U.S. Federal bankruptcy laws.

Konarka developed organic photovoltaic films.

Konarka

In a statement released on June 1, the U.S. company, which produced the Power Plastic solar panel, said that under the proceedings it has ceased production and has been appointed a liquidator. "Creditors will be asked to submit their claims to the Bankruptcy Court and are unable to obtain payment from the company," read the statement.

Howard Berke, chairman, president and CEO explained, "Konarka has been unable to obtain additional financing, and given its current financial condition, it is unable to continue operations. This is a tragedy for Konarka’s shareholders and employees and for the development of alternative energy in the United States."

He added that several "large international" companies have expressed an interest in Konarka. The Chinese government has also reportedly shown interest in the company, meaning that it "had not entirely given up hope that a rescue financing or acquisition would emerge in the bankruptcy. Under Chapter 7 proceedings, however, any such transactions are evaluated by a trustee and not by the company itself."

Konarka was established in 2001. Since then, it invested of over US$170 million in private capital and $20 million in government research grants, and opened a large-scale manufacturing plant in New Bedford, Massachusetts. It has a workforce of over 80.