In what is sure to ignite more media controversy regarding the merits of solar power, California-based energy company Solar Trust of America recently filed for Chapter 11 bankruptcy. This after representatives from both the federal government and the California government were present when the company broke ground in 2011 on what at the time was billed as the world's largest solar power plant.
The filing comes in the wake of another solar power controversy involving the California company Solyndra, which filed a Chapter 11 bankruptcy petition in 2011. Solyndra received a $500,000 million federal loan before the filing. The company's failure has been used repeatedly to criticize efforts to keep America away from an oil-based transportation economy.
Solar Trust of America listed assets between $1 million and $10 million, as well as liabilities between $50 million and $100 million.
In previous posts, we've discussed Chapter 11 bankruptcy as a tool for individuals and companies to reorganize their business models, stabilize their financial situations and gradually pay creditors back over time. Business bankruptcy can be a lengthy process, but often a beneficial one.
While bankruptcy is frequently associated with failure in the media, what is rarely mentioned is that the ultimate goal of a Chapter 11 bankruptcy is for the business to emerge stronger. California residents will probably want to stay up to date on Solar Trust's bankruptcy proceedings, as good news involving bankruptcy is rarely the topic of news coverage, even if a company does emerge successfully.
Source: Dayton Daily News, "Solar Trust seeks bankruptcy protection in Del.," Randall Chase, April 2, 2012