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Solar firm files for bankruptcy

Chapter 11 protection being sought
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SpectraWatt, a solar-cell manufacturer that relocated its headquarters to Hopewell Junction from Oregon, has closed its factory. The Dutchess County company is now seeking permission from the courts to auction off assets. Andrew Wilson, right, of SpectraWatt speaks with John Lushetsky of the U.S. Department of Energy at the plant last year. Times Herald Record/CHET GORDON

By Michael Levensohn

Times Herald-Record Published: 2:00 AM - 08/23/11 HOPEWELL JUNCTION SpectraWatt, the solar-cell manufacturer that began operating here in early 2010 to great acclaim, only to close a year later, has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy code. The company is seeking court permission to auction off tens of millions of dollars worth of assets. SpectraWatt blames its failure on a combination of vendor disputes and competitive pressure from countries with higher subsidies and lower costs of production. The petition filed Friday in U.S. Bankruptcy Court in Poughkeepsie lists about $34 million in assets and more than $38 million in liabilities. The assets include more than $6 million in state economic inducements, although it wasn't clear from the filing how much of the money had already been paid, how much was anticipated to be paid, and how much the state might seek to recover.

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Company had 117 employees

SpectraWatt was spun off in 2008 from Intel, which remains a major shareholder. In 2009, the company moved its headquarters from Hillsboro, Ore., to IBM's Hudson Valley Research Park in Hopewell Junction to take advantage of incentives provided by New York state. It became part of a burgeoning cluster of solar businesses on both sides of the Hudson. The manufacturer quickly ramped up hiring and production, and by late last year, it boasted 117 fulltime employees and contractors. U.S. Labor Secretary Hilda Solis visited the plant last year, touting the potential of green technology to create jobs.

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Plant closed, workers laid off

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In December, though, SpectraWatt filed a notice with the state Labor Department indicating it planned to let those workers go and shut down this spring. By March, the plant was closed, and its employees were laid off. In court papers, CEO and Chief Restructuring Officer Brad Walker said the company had been seeking

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Solar firm files for bankruptcy | recordonline.com

since late last year to sell itself and settle with creditors, but had been unable to reach the needed agreements, and filed for bankruptcy protection as a result. "Due to various operational issues, disputes with vendors and others, and most recently, deteriorating market conditions in the solar cell industry, the Debtor has idled its manufacturing facility, closed its operations in Oregon, retained only a skeleton staff, and has been marketing its assets for sale," he said. SpectraWatt is seeking court permission to auction off the company's assets in September. mlevensohn@th-record.com
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Reader Reaction
Echo 4 Items
Admin B It's very expensive because no one is making it here. If there were more suppliers, that demand would go up and it would be cheaper.......But ya know, TARP money COULD have been used for alternative energy..... Tuesday, August 23, 2011, 9:38:37 PM Flag

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Fred2OC "green" solar panel installs and use in homes carry a break even horizon of between 10 and 20 years. This is a non-starter with normal homeowners. Having the government subsidizing private industry is equally distasteful. The bottom line is green energy costs too much green. Tuesday, August 23, 2011, 4:06:54 PM Flag

Tom Avenengo This, from the article kind of tells it all, doesn't it? "SpectraWatt blames its failure on a combination of vendor disputes and competitive pressure from countries with higher subsidies and lower costs of production." Yup - pressure from countries with higher subsidies and lower costs. Un huh! Question: So, can any politician tell me, or us, how do we fight that? Inquiring minds want to know. Tuesday, August 23, 2011, 1:44:55 PM Flag

Gabriel Espinosa Not for nothing, but they would never have gone under had the price of solar heating not been so prohibitive to begin with! Who can afford the start up costs, even with the tax breaks!? Not many folks can. If I were President of the United States, instead of diverting so much money to wars in foreign countries which we will never win, I'd invest that money in no interest loans to American homeowners so that they can ALL invest in alternative energy such as solar heating AND I'd federalize the alternative energy industry in order to bring the prices WAY DOWN. Tuesday, August 23, 2011, 9:25:05 AM Flag stone Liked by

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