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Konarka ceases production under bankruptcy protection

Phil Curry - 07 Jun 2012

US organic solar energy firm Konarka has filed for chapter 7 bankruptcy protection, and has ceased its activities with immediate effect.

Konarka's Power Plastic saw heavy funding input but was unable to revolutionise the solar marketUnder chapter 7 of the US Federal Bankruptcy Laws, 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.

No details have yet emerged on whether the company's technology will be sold to recoup costs and how that process will be completed. However the process of winding up the company has been rapid: all production has ceased, and all staff have already been let go.

Howard Berke, chairman, president and CEO of Konarka, states: 'The company has been unable to obtain additional financing, and given its current financial condition, it is unable to continue operations. This is a tragedy for Konarka's shareholders and employees and for the development of alternative energy in the US.

Efforts to commercialise the company's organic solar cell technology, called Power Plastic, had stuttered. Although the company had identified markets for its technology - including building-integrated photovoltaics and automotive glass - these efforts had failed to yield sustained market adoption and orders. Konarka launched its first commercial product, a bag with integrated energy harvesting, in 2009. This product also failed to extend beyond its initially positive niche sales.

Sample Text

The firm announced its bankruptcy in the middle of an investment round, having already secured $170 million (
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