Abound Solar goes Chapter 7 route
Abound last week announced it planned to seek bankruptcy but left unclear whether it would try to reorganize under Chapter 11 or file for Chapter 7. This week, in U.S. Bankruptcy Court for the District of Delaware, it clarified its intent.
It filed Chapter 7, meaning the company intends to halt its operations and dissolve.
In its paperwork, it provided the range for its liabilities and did the same for its assets, estimating they amount to between $100 million and $500 million.
The solar manufacturer also said in its filing that it has an estimated 200 to 999 creditors, including multiple Northern Colorado companies and individuals.
The long list of creditors includes Bohemian Cos., Advanced Energy Industries, Degrees Restoration Inc., AMPT, Alpha Engineering, payroll service ADP, Abdenour Amtout, Alan Davies and Anthony Barone, all of Fort Collins; Aaron Gustafson, of Berthoud; Annadean Thorn and Brent Warehime, of Greeley; and Anthony Cuthrell of Loveland.
The company estimated that no funds would be available for unsecured creditors after any exempt property is excluded and its administrative costs are paid.
The company laid off its already-reduced workforce of 125 people last week.
The collapse will cost taxpayers between $40 million and $60 million, the U.S. Department of Energy said.
That's because Abound had drawn down $70 million on a $400 million loan guarantee from the energy department.
The company blamed its failure on "aggressive pricing actions from Chinese solar panel companies" that "made it very difficult for an early stage start-up company like Abound to scale in current market conditions."
Abound said it tried to find a buyer but failed to come to terms with any potential acquisition group.
The company has facilities in Loveland, Longmont and Fort Collins.
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