Filing for bankruptcy is sometimes the best solution for a company, even a company that has received $535 million in guaranteed federal funding and more than a billion dollars in private investments. Unfortunately, the solar panel industry is under attack in the United States. In the last month alone, three major US solar manufacturers filed for bankruptcy debt relief protection. While California-based Solyndra had received a government loan guarantee as well as other investment funds, it could not escape the declining market caused by stiff competition from larger Asian rivals and a related drop of 42 percent in the price of solar panels this year alone.

While the US Department of Energy (DOE) and the White House are disappointed in the loss of its investment and the business failure of Solyndra, it pointed to several factors. First, it noted the loan guarantee was based on Solyndra's increased business revenue of 2,000 percent over three years, documented by more than 1,000 installations in over 20 countries. It also pointed out private investors flocked to support the company's efforts. The DOE further offered that these government investment efforts were directed to increasing jobs and thus improving the country's economy. While acknowledging the plan did not succeed in this instance, it said the DOE's overall strategy would more than make up for the loss.

Solyndra has closed its operations, dismissed about 1,100 permanent and temporary employees and expects to be filing for bankruptcy formally in September. The matter will now proceed towards liquidation of company debts and resolution of creditor's claims, including the US government loan. Bankruptcy is complex, involving different layers of laws, rules and regulations susceptible of varying interpretations. In California, an attorney dedicated to helping make important debt solutions may help devise a successful plan to resolve outstanding financial issues and provide the means for a fresh business start.

Source: Sustainable Business, "Solyndra Files For Bankruptcy Despite $535M DOE Guarantee," Sept. 1, 2011