Solar panel manufacturer Siliken Manufacturing USA Inc., and its wholly-owned subsidiary, Siliken USA Inc., based in Carlsbad, filed concurrent petitions Tuesday for relief under Chapter 11 of the Bankruptcy Code, the companies have announced.
The petitions were filed in the U.S. Bankruptcy Court for the Southern District of California. The Siliken Companies are represented by Cooley LLP.
The companies released a joint statement, noting a still-weak U.S. economy, a lack of outside investment sources and downward price pressures for solar energy products as primary reasons for the filing.
“It has become increasingly clear that the Siliken Companies will not have the capital resources they need to move forward with their business strategy,” said Scott Sporrer, vice president and general manager of Siliken USA.
The companies began looking at restructuring options in October 2012, engaging Richard Kipperman of Corporate Management Inc. as chief restructuring officer.
Kipperman said in a release that utilizing the protections of Chapter 11 of the Bankruptcy Code will best serve the interests of the Siliken Companies’ creditors and other constituencies, and ensure that assets of the Siliken Companies’ estates are maximized. The companies had already employed cost-reduction measures through 2012, including the elimination of the balance of their work forces, the release said.
They will now seek to monetize the remaining inventory and equipment during the Chapter 11 proceedings, and to equitably distribute the proceeds.
Siliken Manufacturing is a wholly-owned subsidiary of Siliken S.A., Valencia, Spain, which has itself sought relief from creditors and is pursuing restructuring alternatives under the laws of Spain.