Monday, August 15, 2011

"Evergreen Solar Seeks Bankruptcy Protection With Debt of $486.5 Million" (ESLR)

That took longer than we thought it would.
From our November 2010 post "Market Wasn't Looking for Much From Evergreen Solar, Got it (so the stock is 2% higher)":
The stock is up a couple pennies at 98 cents.
This is one that we identified as a potential bankruptcy back in 2009. Not much has changed since then.
The stock closed at 18 cents down 57% on the day.
From Bloomberg:
Evergreen Solar Inc. (ESLR), a maker of electricity generating solar panels, filed bankruptcy with plans to sell itself at an auction in order to pay creditors owed $485.6 million. 

Investors who hold more than 70 percent of the company’s convertible senior secured notes have agreed to act as the so- called stalking-horse, or initial bidder, in a proposed auction for Evergreen’s assets, including new technology to make solar wafers at lower cost, Evergreen Chief Executive Officer Michael El-Hillow said in court papers today.

The company, based in Marlboro, Massachusetts, blamed the bankruptcy on increased competition from government-subsidized solar-panel makers in China and the failure of the U.S. to adopt clean-energy policies....MORE
When the endpoint of your cash-flow analysis is "Whoa, they got no dough", the appropriate course of action is....