Lowell, Mass.-based Konarka Technologies Inc., a developer of thin-film solar modules, has filed for bankruptcy protection under Chapter 7 of federal bankruptcy laws.
Under Chapter 7 proceedings, the company's operations cease and a trustee is tasked with liquidating the company's assets for the benefit of creditors. Creditors will be asked to submit their claims to the Bankruptcy Court and are unable to obtain payment from the company.
‘Konarka has been unable to obtain additional financing, and given its current financial condition, it is unable to continue operations,’ says Howard Berke, chairman, president and CEO of Konarka. ‘This is a tragedy for Konarka's shareholders and employees and for the development of alternative energy in the United States.’
Konarka was founded by Berke and Dr. Alan Heeger, the winner of the Nobel Prize for his work in conductive polymers. Among the company's assets are over hundreds of owned and licensed patents and patent applications in the field of solar energy and a manufacturing plant in New Bedford, Mass.
According to Berke, several unspecified ‘large international companies’ have expressed interest in financing or acquiring the company. The Chinese government is also reportedly interested, and a rescue financing or acquisition may emerge in the bankruptcy. Any such transactions would be evaluated by the case's trustee.
