A solar power company with a $2 billion dollar project in the works has filed for Chapter 11 bankruptcy this month. With its largest stockholder also filing for bankruptcy in Germany, the Oakland-based company was forced to move towards bankruptcy as well. The company has held the rights to the project for several months and was anxious to go ahead with construction as planned. It won a $2.1 billion conditional commitment to build the 1,000 megawatt Blythe Solar Power Project location from the U.S. Department of Energy. However, since the project did not receive a loan guarantee, it is uncertain as to how the bankruptcy is going to change the plans for the project in the future.
Although the company came close to liquidity, this too failed when the majority stakeholder was forced to file for bankruptcy in Europe. Holding 70% of the shares, this company tried to sell its portion to another organization, but that deal also fell through. If you are going to move forward with Chapter 11 so you can deal with your business related debt, make sure you have a legal professional on your side bycontacting the Malaise Law Firm to enlist the help of a San Antonio bankruptcy lawyer.