Satcon Technology Corp., a provider of utility-scale power conversion products for the renewable energy market, says the company and its subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The petitions were filed in the U.S. Bankruptcy Court for the District of Delaware.
‘This has been a difficult time for Satcon,’ says Steve Rhoades, president and CEO. ‘After careful consideration of available alternatives, the company's board of directors determined that the Chapter 11 filings were a necessary and prudent step, allowing the company to continue to operate while giving us the opportunity to reorganize with a stronger balance sheet and capital structure.’
The company's goal is to emerge from bankruptcy reorganization and continue to supply its customers, Rhoades adds.
In conjunction with the filings, Satcon has filed a series of first-day motions with the court that, with court approval, will allow it to continue to conduct business without interruption. These motions are primarily designed to minimize any impact on the company's customers and employees.
Satcon expects to obtain consent from its secured lenders to use cash collateral so as to provide the company with continued access to funds to operate its business.
In January, Satcon announced a series of cost-reduction initiatives that included closing its Canadian manufacturing facility and reducing its workforce by 35%.
Court documents and other general information about the Chapter 11 case are available here.