Abound Solar bankruptcy to cost taxpayers up to $60 million
An Abound spokesman said it was unclear immediately whether the company planned to file to reorganize through Chapter 11 or liquidate under Chapter 7.
Abound said it tried to find a buyer but failed to come to terms with any potential acquisition group.
The energy department said the market for solar panels conspired against the company.
"When the floor fell out on the price of solar panels, Abound's product was no longer cost-competitive," energy department spokesman Damien LaVera wrote on the federal agency's website. "As a result, the company was unable to meet some of the financial milestones built into the loan agreement to protect the taxpayers and - in September 2011 - the Department halted disbursements on the loan."
By then, the company had drawn down $70 million on a $400 million loan guarantee from the energy department.
The energy department expects total taxpayer losses at 10 to 15 percent of the $400 million loan once bankruptcy liquidation is complete, LaVera
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