The solar panel company Solyndra should be familiar to most Americans by now, but especially with our readers in California. The California-based company has become quite the political hot potato, and it does not appear that mention of Solyndra while the president is on the campaign trail will end any time soon. Solyndra is currently going through the Chapter 11 bankruptcy process, and a recent report has indicated that the company will soon be submitting its proposal for restructuring its business model.
Business owners who are unfamiliar with Chapter 11 should know that the main benefit of this type of protection is the time a filer gets to reorganize. Submitting a reorganization plan for court approval is one of the key steps in Chapter 11 bankruptcy procedure, and from there a company can seek to streamline operations while staying open for business. This, anyway, is the best case scenario.
However, for Solyndra, it appears the company may be having a harder time than others in trying to turn things around. According to recent reports, Solyndra has failed in its effort to find a buyer to continue operating the company. As a result, the business is in the process of liquidating its remaining assets. Company officials have reached an agreement with their creditors and will soon move forward with the remaining bankruptcy plans.
Our readers in the San Diego area should know that the Chapter 11 process can be time-consuming and require extremely close attention to details. But the protection offered from this type of bankruptcy can also be the life preserver that a financially struggling company needs. California business owners who have fallen on tough times will want to be aware of the benefits of a Chapter 11 filing and whether that path is right for them.
Source: The Sacramento Bee, "Solyndra close to filing bankruptcy plan," Randall Chase, June 15, 2012