Konarka Technologies files for Chapter 7 Bankruptcy Protection
Konarka Technologies, Inc., a leading developer of thin-film solar panels based in the USA, has filed for bankruptcy protection under chapter 7 of the 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.
Howard Berke, chairman, president and CEO of Konarka, states: "Konarka has been unable to obtain additional financing, and given its current financial condition, it is unable to continue operations. This is a tragedy for our shareholders and employees and for the development of alternative energy in the United States."
The company was founded by Berke and Dr Alan Heeger, the winner of the Nobel Prize for his work in conductive polymers. According to Berke serveral international companies had expressed interest in financing or acquiring the company. He further noted that, given the worldwide interest in the company, including from the Chinese government, the company had not entirely given up hope that a rescue financing or acquisition would emerge in the bankruptcy. Under Chapter 7 proceedings, however, any such transactions are evaluated by a trustee and not by the company itself.