Solyndra LLC has filed for bankruptcy in a shocking series of failures in the US solar industry. The California based solar panel manufacturer has filed for a Chapter 11 bankruptcy even after it received more than half a billion dollars in Government loan guarantees.
The declaration of bankruptcy by Solyndra has followed the failures of many solar manufacturers in the US, mainly because of the oversupply and competition from abroad. The company has been struggling to raise capital since a long time as the economy slowed down. According to the document available with the US Bankruptcy Court, Solyndra owes $783.8 million to various parties including the $527.8 million that it owes to the federal government.
The company will be laying off 1,100 workers in its bankruptcy protection claims. They are also looking for a buyer to take the company out of the debt or they might contemplate liquidating the assets of the company to pay off the creditors. This claim has been followed by severe criticism of the US government policy on green technology as foreign competitors are receiving considerable incentives from their governments.