Siliken Manufacturing USA Inc. and its wholly owned subsidiary Siliken USA Inc. – part of Spain-based PV manufacturer Siliken SA – have filed concurrent petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
The petitions were filed in the U.S. Bankruptcy Court for the Southern District of California. The companies are represented by Cooley LLP, general bankruptcy counsel.
‘It has become increasingly clear that the Siliken companies will not have the capital resources they need to move forward with their business strategy due to the continued weak U.S. economy, along with an environment of continued downward price pressures for PV solar energy products and the lack of outside investment sources,’ explains Scott Sporrer, vice president and general manager of Siliken USA.
The bankruptcy actions are intended to maximize value to creditors, Sporrer adds.
In October 2012, the Siliken companies engaged a restructuring officer to evaluate their options and concluded that seeking protection under the Bankruptcy Code was the best means of providing value to their constituents.
In an effort to reduce costs, the companies have eliminated the balance of their workforce over the past year. They plan to seek to monetize the remaining inventory and equipment during the Chapter 11 proceedings and to equitably distribute the proceeds.
