NovaSolar bankruptcy announced

19. June 2012 | Industry & Suppliers, Markets & Trends | By:  Becky Beetz

Thin film manufacturer, NovaSolar has filed for Chapter 11 bankruptcy, according to news reports.

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NovaSolar filed for Chapter 11 in the U.S. Bankruptcy Court in San Jose, California.

Bloomberg has reported that the photovoltaic amorphous silicon manufacturer filed for bankruptcy last Friday. The company was established by the management of OptiSolar, which was founded in 2006 and failed in 2009.

The news source continues by saying that at the time of the closure, First Solar acquired $400 million worth of OptiSolar's contracts. Meanwhile, the management of OptiSolar set up NovaStar using OptiSolar's other assets. Its sole shareholder is said to be a Chinese company, Portcullis TrustNet.

Citing court documents, Bloomberg adds that NovaSolar owes $3.5 million in unpaid wages to employees. Apparently it filed for Chapter 11 in the U.S. Bankruptcy Court in San Jose, California, claiming $6 million in assets and $14 million in liabilities.

Back in February, Forbes wrote an article, criticizing NovaSolar’s business, particularly in light of the fact it didn’t seem to attempt to be doing anything differently from OptiSolar. As the author summed up at the time, "NovaSolar might be headed for … solar death row."

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