WASHINGTON (dpa-AFX) - Solar inverter maker Satcon Technology Corp. (SATC), Wednesday filed for protection under Chapter 11 Bankruptcy code, following which its shares plummeted over 70 percent.
Satcon's Chief Executive Steve Rhoades said 'After careful consideration of available alternatives, the Company's Board of Directors determined that the Chapter 11 filings were a necessary and prudent step, allowing the Company to continue to operate while giving us the opportunity to reorganize with a stronger balance sheet and capital structure.'
Satcon said that as of June 30 it had assets of $92.3 million and $121.9 million in the Chapter 11 documents. The petitions were filed in the U.S. Bankruptcy Court for the District of Delaware. Six units have also filed for bankruptcy along with Satcon Technology.
In January, Boston, Massachusetts-based Satcon Technology had said it will cut 140 jobs, or about 35 percent of its workforce, and close its Canadian manufacturing facility. The company has been reporting loss for more than 20 consecutive quarters.
For the second quarter ended June 30, 2012, Satcon reported a loss of $6.6 million on revenues of $23.7 million.
The company has filed a series of motions that will allow it to continue to conduct business without any interruption. Satcon also expects to get consent from its secured lenders to use cash collateral for funds to operate its business.
SATC is currently trading on the Nasdaq at $0.0935, down $0.2571 or 73.33%, on a volume of 4.3 million shares, above the three-month average volume.
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© 2012 AFX News
